Oil prices declined Friday as markets weighed potential US-Iran ceasefire negotiations against ongoing supply risks from Houthi attacks on Saudi Arabia. Negotiators meeting in New York are exploring a phased conflict resolution that could see Tehran reopen the Strait of Hormuz and Washington lift economic sanctions, though Iranian President Pezeshkian stated the war's end depends on US decisions. Physical supply conditions remain fragile despite diplomatic optimism. Only 10 commodity vessels transited the Strait of Hormuz on Wednesday, up from seven the previous day but still well below the 10-day average of 17 daily passages. While diplomatic progress may reduce geopolitical price premiums, shipping data indicates genuine normalization of oil flows remains distant.