Qatar's Prime Minister has reportedly stressed the importance of restraint to Iran's leader, urging them to refrain from attacking Israel while the Gaza cease-fire negotiations are underway in Doha. The talks, scheduled to resume next week, have seen a minor setback as Hamas claims that Israel did not comply with previously agreed-upon terms.

According to sources, Qatar's Prime Minister held a phone call with Iran's leaders on Thursday, expressing concerns over the consequences of any provocative actions towards Israel during the crucial negotiation process. While the talks are showing progress, Qatar emphasized the need for de-escalation to maintain momentum and reach a peaceful resolution.

The news of Qatar's intervention has had an impact on energy markets, as U.S. crude oil futures dropped more than 1% on Friday. The West Texas Intermediate September contract ended the week down by $1.51, or 1.93%, standing at $76.65 per barrel. Meanwhile, the Brent September contract experienced a minimal gain of 0.03%, closing at $79.68 per barrel.

The cautious response in the energy markets reflects a slight relaxation of the risk premium associated with geopolitical tensions. Traders, seemingly disregarding the possibility of imminent aggression, have chosen to focus on concerns regarding softening oil demand in China. Additionally, OPEC has recently revised its forecast for oil demand in 2024, leading to a further dampening effect on prices.

Notably, earlier in the week, global oil prices surged by over 4% due to anxieties surrounding a potential Iranian attack on Israel. However, the anticipated retaliation for the assassination of a Hamas leader in Tehran has not materialized, causing prices to retreat. Analysts suggest that the market may be adjusting its expectations of global demand growth, casting doubt on the previously optimistic outlook.

While the Gaza cease-fire negotiations were temporarily paused on Friday, parties are anticipating a resumption next week. Although Hamas did not directly participate in the talks, they were provided with updates and insights by mediators. However, tensions remain high as Hamas claims Israel has not adhered to the agreed-upon terms from previous rounds of negotiations.

The outcome of the talks and the adherence to the cease-fire agreement have significant implications for the stability of the region and energy markets. The international community closely watches these negotiations, as any escalation of hostilities could disrupt oil supply routes and impact global energy prices.

As the weekend approaches, market analysts are observing a swing between market fundamentals and geopolitical factors, with the current sell-off primarily driven by developments in the Middle East and Iran's perceived lack of retaliation. However, uncertainties persist, and the energy markets remain sensitive to geopolitical tensions and shifts in global demand.