Oil falls more than 4% on report Pakistan is pushing for new U.S.-Iran talks with China’s backing

Oil prices dropped by more than 4% Friday on a report that Pakistan is looking for a way to restart talks between the U.S. and Iran.

Brent crude futures, the international benchmark, were nearly 5% lower at $95.73 a barrel. U.S. West Texas Intermediate crude futures were 4.3% lower to trade at $88.27 per barrel.

Three sources told Reuters that Pakistan’s effort to renew U.S.-Iran talks was backed by China.

“The Chinese are unhappy because Iran’s attacks on other Gulf states and the closure of the Strait of Hormuz are hitting their interests,” a Pakistani ⁠government official told Reuters.

U.S. crude oil has gained about 7% this week and Brent is up more than 8% as fighting in the Middle East has sharply escalated.

Overnight, the U.S. Central Command completed its 13th consecutive night of strikes on Iran, targeting military command centers, drone storage facilities, communication networks, coastal surveillance sites, and maritime capabilities.

Centcom said the strikes were intended to “further diminish the threat Iran poses to civilian mariners and commercial vessels transiting the Strait of Hormuz.”

“The international waterway remains open for transit despite recent attacks from Iran’s Islamic Revolutionary Guard Corps. Commercial vessels continue to freely navigate the strait with U.S. military support,” the military unit said in a statement.

“More than 50,000 U.S. service members are currently operating across the Middle East.”