Oil prices edged lower in Asian trading on Friday and were set to post a weekly loss, as hopes of easing Middle East tensions reduced the risk premium that had supported markets in recent sessions.
The dollar firmed on Thursday, as the currency’s recent safe haven status was bolstered by muddled messaging on the state of peace talks between the U.S. and Iran.
Asian stock markets were swept up in a global rout on Friday, tracking Wall Street lower as the threat of a protracted energy shock out of the war-torn Middle East sent borrowing costs spiralling higher.
US President Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign minister who said his country was reviewing a US proposal but had no intention of holding talks to wind down the conflict.
Stocks and bonds rose while oil fell as traders weighing the viability of US-Iran ceasefire talks sent markets to a series of swings.
Japan is weighing a controversial plan to arrest the yen's slide: stepping into oil futures markets, sources say, as long-standing policy tools lose traction against stubborn inflation pressures.