Oil prices declined as market sentiment shifted towards renewed optimism for peace talks between the United States and Iran, raising expectations for a gradual restoration of shipping operations through the Strait of Hormuz. WTI crude futures fell by 1.5%. The White House announced it would dispatch two envoys to Pakistan to engage in discussions with Iranian officials. However, authorities in Tehran expressed a pessimistic outlook regarding the prospects for negotiations. Reports indicate that Iranian Foreign Minister Abbas Araghchi plans to submit a new written response to the US peace proposal during his visit to Pakistan. Thierry Wizman, Global FX and Rates Strategist at Macquarie Group, noted that recent developments "suggest traders are increasingly leaning toward the view that the military phase of the US-Iran conflict is ending or has ended, while the economic confrontation is becoming entrenched." Two US officials familiar with the matter revealed that former President Trump's posts on Truth Social and his decision to maintain a maritime blockade on Iranian ports have negatively impacted negotiations being advanced through intermediaries such as Pakistan. US Defense Secretary Hagerty stated on Friday, "All Iran needs to do is verifiably and meaningfully abandon its nuclear weapons program. Otherwise, they will watch their fragile economy crumble under continued US pressure. The blockade can last as long as President Trump decides." June-delivery WTI crude futures in New York declined by 1.5%, settling at $94.40 per barrel. June-delivery Brent crude futures settled 0.3% higher, at $105.33 per barrel.