Oil prices edged lower on Friday as markets balanced possible diplomatic progress between the United States and Iran against attacks by Iran-backed Houthi rebels on Saudi Arabia. Brent fell 74 cents, or 0.69%, to $105.85 a barrel, while West Texas Intermediate (WTI), a U.S. crude benchmark, dropped 81 cents, or 0.86%, to $93.80 at 0032 GMT. The declines followed a volatile week in which both contracts gained as much as 5% on Thursday. Brent settled 3.4% higher and WTI rose 2.7%, with Brent recording its highest close since September 15. WTI had fallen 13% over the previous six sessions and was down 6.42% for the week, while Brent was up 2.09%. U.S. and Iranian negotiators in New York are discussing a phased route out of the war that would see Tehran reopen the Strait of Hormuz, a key global oil shipping route, and Washington lift its economic blockade of Iran. Since the war began at the end of February, around a fifth of global oil and gas shipments has been curtailed, pushing prices 50% higher in March and prompting liquefied natural gas buyers to seek more stable supplies elsewhere. Saudi Arabia said it intercepted six ballistic missiles launched by Yemen’s Iran-backed Houthis toward Taif and the Yanbu area. Saudi Arabia is increasing crude flows through the East-West Pipeline to Yanbu, but tanker loadings have not resumed, according to industry sources, satellite imagery and shipping data.