Oil prices fell about 2% on Friday as hopes for a truce between the US and Iran grew, despite lingering concerns over supply disruptions. The drop came amid discussions in New York between US and Iranian negotiators exploring a phased exit from conflict, including the reopening of the Strait of Hormuz. The US rejected Iran’s seven-day plan to reopen the strait, calling it unacceptable. Iran, meanwhile, warned against the use of the strait, framing it as a symbol of national honor. Reports suggest Iran may have seized a US underwater drone in the area, suspected of espionage. The situation adds to regional tensions, with Israel continuing attacks in southern Lebanon.