Global Oil Prices Dip on Iran Talk Hopes; US Utility Eyes Data Center Boom

Oil prices fell Friday on renewed, though fragile, hopes for U.S.-Iran peace talks, according to Rigzone. West Texas Intermediate futures dropped 1.5% to settle above $94 a barrel after the White House said it was sending envoys to Pakistan with the intention of talking with Iranian officials. Despite the weekly drop, WTI futures remain up 13% for the week, the biggest jump since the war in the Middle East began in late February.

The potential for talks offers some relief as the Strait of Hormuz remains largely shut, blocking most Persian Gulf exports. Traders are closely tracking signals, but conflicting messaging persists. Iran Foreign Minister Abbas Araghchi plans to present a new written response to a U.S. proposal for a peace deal while in Pakistan, the New York Times reported.

Meanwhile, a U.S. naval blockade of Iranian ports continues to choke off crude exports. According to Rigzone, Iran is continuing to load millions of barrels onto supertankers at Kharg Island, but with the U.S. blocking routes, the crude is likely filling up available tankers. The U.S. Navy intercepted at least two supertankers this week and boarded a sanctioned tanker called Majestic X in the Indian Ocean.

Analysts note the blockade could eventually force production cuts. JPMorgan Chase & Co. analysts stated the move "would constrain volumes mechanically," and over time, force Iran to curtail output. However, the process may be slow; Iran has 90 million barrels of available storage and could maintain production at about 3.5 million barrels a day for another two months even if exports halt completely.

In a separate development with implications for long-term energy demand, CenterPoint Energy Inc. announced plans to energize 8 gigawatts of generation projects for data centers by 2029, Rigzone reported. The Houston-based utility expects a nearly 50 percent increase in peak demand in its territory by 2029 compared to 2024. Of the 8 GW planned, 3.5 GW are already under construction.

CenterPoint President and CEO Jason Wells said the growth in industrial load, which includes 12.2 GW of firmly committed projects in Greater Houston, is projected to deliver customer savings of approximately $4 billion over the next decade. The company also reported a $316 million GAAP net profit for Q1 2026.

For Bakken operators, the volatile geopolitical landscape underscores the continued premium on secure, domestic production. Any resolution in the Strait of Hormuz could pressure global prices, but the structural competition for energy infrastructure and electricity, highlighted by CenterPoint's massive data center load forecast, points to sustained industrial demand for reliable power and natural gas.