Oil fell more than 4 percent after a report that Pakistan, backed by China, is seeking to revive US-Iran talks

Oil gave back part of the week's rally on Friday. Brent crude fell more than 4 percent to about $96 a barrel by early afternoon, and US West Texas Intermediate fell to near $89. Both had settled above $100 and $92 the day before.

The move followed a Reuters report. Citing three sources, Reuters said Pakistan is exploring a path to restart talks between the United States and Iran, in an effort initiated by China. Iran's interior minister, Eskandar Momeni, visited Islamabad this week and met Pakistani leaders and the army chief, Asim Munir. China's foreign ministry said it supported the mediation, according to Reuters, and a Pakistani official said Beijing had pressed for the effort because the fighting, including the closure of the Strait of Hormuz, was damaging its own economic interests in the Gulf.

No public document records the contacts. They are described by unnamed sources, and neither Washington nor Tehran has confirmed a new round of talks.

The week still ends higher. Even after Friday's drop, Brent held a gain of about 8 percent over the five sessions, and WTI about 7 percent, a measure of how far the earlier escalation had pushed crude before the diplomacy reached the tape.