Oil prices were on track for a steep weekly drop on Friday, as investors watched developments around the framework U.S.-Iran peace agreement. 

As of 04:38 ET (08:38 GMT), Brent crude futures, the global oil benchmark, had dipped 0.2% to $79.67 per barrel, while U.S. West Texas Intermediate crude futures climbed 2.0% to $78.15 per barrel.

Both benchmarks were set to decline by more than 7% for the week. They are sitting near their lowest levels since early March, shortly after the start of the joint U.S.-Israeli assault on Iran. 

"Falling oil prices ease inflation expectations, reduce pressure on central banks, and support risky assets," analysts at UBS said in a note to clients.

Switzerland’s foreign ministry has said that talks between the U.S. and Iran due to begin in mountaintop resort of Burgenstock on Friday have been postponed, raising questions over the durability of a recently signed preliminary agreement. The discussions had been set to revolve around a dispute over Iran’s nuclear ambitions, a key sticking point between Washington and Tehran.

Still, market sentiment has improved since Washington and Tehran signed the interim accord, which halts hostilities and restores commercial navigation through the Strait of Hormuz -- a vital waterway for around one-fifth of global oil shipments.

The agreement has raised expectations that millions of barrels of stranded crude could gradually return to international markets in the coming weeks and months.

The U.S. also said it has lifted its naval blockade on Iranian ports as the interim deal took effect. Ships carrying stranded oil began making their way out of the waterway on Thursday, according to reports.

The prospect of renewed exports has eased some of the geopolitical risk premium that had driven oil prices above $120 per barrel at the height of the crisis, although industry analysts have cautioned that a full recovery in Gulf oil flows will not be immediate.

Meanwhile, broader macroeconomic factors added pressure to oil markets. A hawkish U.S. Federal Reserve stance, including indications that interest rates could remain elevated for longer, could weigh on growth, potentially denting crude demand.