Oil prices saw a drop on Friday after reports surfaced that the United States and Iran were exploring a phased agreement that could reopen the Strait of Hormuz, easing fears over supply disruptions linked to the conflict. 

Brent slipped toward USD 105.6 a barrel after rising over 7 per cent over the previous two sessions, while West Texas Intermediate traded below USD 94, amid hopes of restored Middle East flows as discussions were reportedly taking place on the sidelines of the United Nations General Assembly.