Oil prices settle lower as US sanctions ease fears of escalation in Iran

Oil prices settled down on Friday as the U.S. imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement, a day after President Donald Trump said he might take two weeks to decide U.S. involvement in the Israel-Iran conflict.

Brent crude futures settled down $1.84, or 2.33%, to $77.01 a barrel.

U.S. West Texas Intermediate crude for July - which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was down 21 cents, or 0.28%, at $74.93.

The more liquid August contract settled at $73.84.

Brent rose 3.6% on the week, while front-month U.S. crude futures increased 2.7%.

The Trump administration issued fresh Iran-related sanctions, including on two entities based in Hong Kong, and counter-terrorism-related sanctions, according to a notice posted to the U.S. Treasury Department website.

The sanctions target at least 20 entities, five individuals and three vessels, according to Treasury's Office of Foreign Asset Control.