Oil prices slipped on Friday after Oman said operations at its key Mina al Fahal export terminal were continuing normally, easing immediate concerns about a potential disruption to crude shipments from one of the Gulf region’s important export hubs.

The decline followed reports that oil loading activities had been suspended after an explosion near the terminal’s mooring facilities.

Brent crude futures fell 24 cents, or 0.25%, to $94.79 a barrel, while U.S. West Texas Intermediate crude dropped 56 cents, or 0.6%, to $92.48 a barrel. The losses came after both benchmarks posted sharp declines in the previous session.

Even so, oil remains on track for its first weekly gain in three weeks. WTI is up more than 6% for the week, underscoring how geopolitical tensions continue to dominate market sentiment despite Friday’s pullback.

The immediate catalyst for the decline was reassurance from Petroleum Development Oman that exports from Mina al Fahal were proceeding without interruption. The terminal typically handles between 800,000 and 900,000 barrels per day of Omani crude, making it a critical outlet for regional energy supplies. Any prolonged disruption would have raised fresh concerns about global supply availability at a time when inventories are already tightening.

The market reaction highlights how sensitive oil prices have become to developments across the Middle East. Traders remain focused on the prolonged conflict involving Iran and the ongoing diplomatic efforts aimed at reducing tensions across the region. While fears of a major supply shock have eased from their peak levels, the threat has not disappeared.

A central concern remains the Strait of Hormuz, the narrow waterway through which roughly one-fifth of global oil consumption moves. Shipping traffic through the strategic chokepoint has been constrained for months, keeping a geopolitical risk premium embedded in crude prices.

The broader conflict landscape remains highly uncertain. Hezbollah leader Naim Qassem on Thursday rejected a U.S.-brokered agreement between Israel and the Lebanese government aimed at ending hostilities. Meanwhile, Iran has reportedly linked any broader peace arrangement with Washington to a ceasefire in Lebanon, adding a fresh challenge to already fragile negotiations.

U.S. President Donald Trump sought to strike a more optimistic tone, saying progress was being made between Israel and Lebanon and expressing confidence that Lebanon deserved an opportunity to return to peace. However, market participants remain cautious given the frequent shifts in diplomatic signals coming from the region.

“Any optimism remains heavily clouded by a tangled web of headlines and counter-headlines,” said IG market analyst Tony Sycamore.

From a technical standpoint, Sycamore noted that oil’s underlying trend remains constructive.

“As long as WTI crude oil remains above trendline support in the low $80s, the risks remain skewed to the upside,” he said.

Beyond geopolitics, traders are focused on tightening supply fundamentals. Analysts have warned that global crude inventories are falling, raising the possibility of a sharper supply-demand imbalance during the third quarter, when seasonal consumption typically strengthens.

That concern is reinforced by continued production constraints across several regions and uncertainty surrounding Iranian exports. Shipping data indicate that Iranian oil exports have fallen to their lowest level in six years, largely because of intensified U.S. efforts to restrict the country’s oil trade. While softer demand from China has partly offset the impact by reducing buying pressure, analysts warn that any rebound in Chinese consumption could quickly tighten the market further.

The supply outlook is also being shaped by OPEC’s continued confidence in demand growth. OPEC Secretary General Haitham Al Ghais said the organization is maintaining its forecast for global oil demand to increase by 1.2 million barrels per day this year, despite heightened geopolitical tensions and disruptions to maritime trade routes.

That projection suggests the producer group sees the current turbulence as insufficient to derail global consumption growth. If OPEC’s forecast proves accurate while inventories continue to decline, the market could face a significantly tighter balance in the second half of the year.

For investors, the key issue is that oil is now being pulled by two competing forces. One is tied to diplomatic developments, such as Oman’s confirmation that exports remain uninterrupted, which can quickly remove some of the fear premium from prices. The other has to do with unresolved conflicts involving Iran, Israel, Lebanon, and maritime security in the Gulf, which continue to support crude near elevated levels.

The result is a market that remains highly volatile, with prices responding rapidly to every new headline. While Friday’s decline indicates immediate supply fears have eased, traders are unlikely to become complacent given the strategic importance of the Middle East to global energy markets and the growing concern that declining inventories could leave the market vulnerable to any future disruption.

Oil prices may have stepped back from recent highs for now, but the underlying drivers that pushed them higher remain firmly in place.

OpenAI has signaled support for a new phase of government involvement in artificial intelligence development, confirming it will comply with President Donald Trump’s executive order requiring leading AI companies to give federal authorities advance access to powerful models before they are publicly released.

The move places the ChatGPT developer among the first major frontier AI companies to publicly endorse the administration’s effort to establish a formal oversight framework for capable AI systems, a technology many policymakers now view as carrying national security, economic, and societal implications.

Speaking to CNBC on the sidelines of the SXSW conference in London, OpenAI’s Head of Countries, George Osborne, said the company would participate in the voluntary federal review process outlined in the executive order.

“It’s quite right that democratic governments have a big role to play in how this technology is used and deployed,” Osborne said.

This provides a glimpse into how leading AI developers are adapting to growing government scrutiny as the race to build more powerful models accelerates.

Trump’s executive order, signed earlier this week, requests that AI developers provide the federal government with access to new frontier models at least 30 days before their release. The aim is to allow officials to evaluate their capabilities and assess potential risks before deployment.

Under the framework, participating companies would submit models for benchmarking designed to measure advanced cyber capabilities and determine whether a system qualifies as a “covered frontier model,” a designation expected to trigger additional monitoring and safety requirements.

The policy reflects mounting concern in Washington that rapidly advancing AI systems could be used for cyberattacks, disinformation campaigns, biological research, or other activities with national security implications. OpenAI’s willingness to participate suggests the company sees closer cooperation with governments as increasingly unavoidable as AI capabilities continue to expand.

Osborne said the company has long advocated structured engagement with regulators and policymakers rather than waiting for governments to impose rules unilaterally.

“As this leading frontier lab with these very, very powerful and capable AI models, and we don’t wait to be asked,” he said.

“We proactively suggested ways that governments can keep a track on safety and security issues, not just in the U.S., but more broadly.”

His remarks highlight a significant shift in the AI industry. Not quite long ago, many technology firms argued that heavy regulation could stifle innovation. Today, some of the sector’s largest players are actively helping shape regulatory frameworks, partly because they recognize that public trust and government support may become critical competitive advantages.

The executive order is also a reflection of a broader trend toward government oversight of frontier AI systems. Policymakers in the United States, Europe, China, and several other jurisdictions are increasingly exploring mechanisms that would allow regulators to assess advanced models before deployment.

The debate centers on how to balance innovation with safety.

Supporters of oversight argue that governments need visibility into the capabilities of cutting-edge AI systems before they reach the public, particularly as models become more autonomous and capable of carrying out complex tasks. Critics, however, warn that excessive government involvement could slow innovation, create barriers for smaller developers, and concentrate power among a handful of large technology companies that can afford extensive compliance requirements.

Osborne acknowledged that policymakers face a difficult balancing act.

“Governments are going to have to be smart” about regulating artificial intelligence, he said.

Rather than rigid rules that may quickly become outdated, OpenAI is advocating for regulatory institutions that can adapt alongside the technology.

“What we suggest to governments is they create powerful regulatory bodies, but with a lot of flexibility into how they will operate in the future,” Osborne added.

The company’s support for the executive order comes at a pivotal moment for the AI industry. Competition among leading developers, including OpenAI, Anthropic, Google DeepMind, and other frontier labs, has intensified as firms race toward advanced systems that many researchers believe could approach artificial general intelligence within the coming decade.

That competition has heightened concerns among governments seeking to ensure that national security considerations keep pace with technological progress. In the U.S., the federal government has moved to stop states from creating regulatory rules for AI, resulting in a standoff.

With no AI regulatory framework developed so far, the broader significance of this move may extend beyond the United States. As governments worldwide grapple with how to regulate powerful AI systems, the arrangement could become a model for future cooperation between states and frontier AI developers.