According to an AXIOS reporter, a senior U.S. official said Iran fired four one-way attack drones at a U.S. merchant ship. The official added U.S. forces shot down those drones and struck another Iranian ground-based drone-launch unit before it could fire.

WTI crude opened slightly higher as the US and Iran remain at odds over how to reopen the Strait of Hormuz. President Trump said he was "not satisfied" with the talks. The White House denied an Iranian report that a draft agreement would have Iran and Oman oversee shipping through the strait. Despite the difficulties, oil prices remain on track to slip for a second straight week amid optimism that the two sides could at least reach a temporary deal. The protracted negotiations hinge on Iran's desire to retain control over the Strait of Hormuz and the fate of its nuclear program. RABOBANK global energy strategist Joe DeLaura said: "For now the oil market is too 'comfortable.' Releases from strategic petroleum reserves are helping to offset some of the supply losses caused by the war."

RBNZ Chair Breman said he recognizes it will take some time before higher oil prices feed through to a broader set of industries.