Following a truce between Israel and Iran, oil was on track for its largest weekly drop in two years as attention shifted from the Middle East war to US trade talks.

While West Texas Intermediate traded above $65 per barrel, Brent remained stable at $68 per barrel, down almost 12% for the week. Investors are focusing on the status of US-China trade negotiations now that the precarious truce is intact. According to Commerce Secretary Howard Lutnick, an agreement was made last month.

According to a Bloomberg report, Lutnick stated that the agreement, which he claimed was signed two days ago, has clauses pertaining to China supplying the US with rare earths. A request for comment on Friday was not immediately answered by China's Foreign Ministry in Beijing, and a spokesperson for the Chinese Embassy in Washington declined to comment.

Following the US bombing of Iranian nuclear installations on Monday, oil prices surged, and on Tuesday, President Donald Trump announced a truce. Since then, oil prices have fluctuated about $15 per barrel this week. Concerns about supply interruptions from an area that supplies roughly one-third of the world's crude oil were allayed by the truce.

Trump has made conflicting statements on his drive to exert maximum pressure on Iranian petrodollars since the truce, even suggesting that US financial sanctions aren't having much of an impact on China's purchases of the Islamic Republic's goods. CNN reports that his administration is talking about incentives to resume negotiations with Tehran, like the potential lifting of sanctions and the release of cash that has been blocked. According to state-run IRNA, Iran denied the assertion that nuclear negotiations with the US had resumed.

According to Priyanka Sachdeva, a senior market analyst at Singaporean brokerage Phillip Nova Pte, oil ended a crazy week by wiping off almost all of its war premium with a startling pace of unwind. As the Middle East background fades, attention shifts to OPEC and trade concerns.