Oil prices traded in opposite directions on Friday, with Brent crude rising and West Texas Intermediate (WTI) retreating after the recovery posted in the previous session, which had followed sharp losses triggered by the Democrats’ decisive victory in the United States midterm elections. Investors continued to assess the prospects of a possible end to the war in the Middle East.

Brent crude, the European benchmark, gained 1.01% to $99.28 per barrel, while WTI, the North American reference, fell 0.81% to $91.30 per barrel.

Brent was trading near the $100-per-barrel level after closing the previous session with a gain of almost 4%, in a period of heightened volatility during which prices swung across a $19 range since Monday. Despite the recovery, front-month futures contracts have accumulated losses of around 15% this week, putting them on course for their steepest weekly decline since April 2020.

Expectations of a faster resolution to the war have grown, although significant divergences between the parties persist. Iran is demanding the lifting of the US naval blockade, the easing of sanctions, and the release of frozen assets before it fully reopens the Strait of Hormuz.

Meanwhile, the New York Times reported that Tehran is examining proposals put forward by mediators regarding its nuclear programme, a signal that Qatar’s diplomatic efforts to prevent a fresh military escalation may be gaining traction.

Brent prices had reached six-month highs in October after US President Donald Trump threatened to resume strikes against Iran following the midterm elections. Since then, signs of restraint from the US administration and the Democrats’ victory — securing control of both chambers of Congress — have fuelled expectations of a possible shift in strategy in Washington.

The new political balance could limit the administration’s room to fund further military operations, although it does not eliminate the possibility of an escalation in the conflict.

“What matters is whether the White House will change its strategy toward Iran,” Pavel Molchanov, analyst at Raymond James & Associates, told Bloomberg.

According to the analyst, a lasting diplomatic agreement that allows the Strait of Hormuz to reopen could exert greater downward pressure on oil prices. However, given the uncertainty over how negotiations will unfold, he warned that “we should maintain scepticism.”

Trump met on Thursday with his senior national security advisers to discuss the situation in Iran, on the sidelines of the weekly intelligence briefing, Axios reported, citing two unidentified US officials.

According to the publication, the President is weighing three options: launching new military strikes, maintaining economic pressure on Tehran, or negotiating a deal that involves significant concessions to the Iranian side.