Oil prices have experienced a significant decline, with West Texas Intermediate settling 1.3% lower at just below $97 a barrel. This drop contributes to a 13.4% decrease over the week, marking the largest weekly loss since 2020. The market's volatility is largely attributed to the upcoming negotiations between Iran and the US, which are crucial for determining the future of their fragile ceasefire and the flow of energy through the Strait of Hormuz. Despite the ceasefire holding broadly, tensions remain high due to Iranian attacks on energy infrastructure and ongoing conflicts in the region. Countries such as Japan and China are beginning to release oil from their reserves to manage supply shortages, while India is capping fuel purchases to control stock levels. Analysts express concern that the current sell-off in oil prices may be unwarranted and could reverse if negotiations yield positive results.