Oil prices have dropped after Iran sent a fresh proposal for US negotiations, but prices remain on track for weekly gains, with Tehran still blocking the Strait of Hormuz and the US Navy blocking exports of Iranian crude, Reuters reports.

Brent crude futures for July were down 26 cents, or 0.2 per cent, at $110.14 a barrel by 1316 GMT (6:16pm PKT). West Texas Intermediate futures lost $1.83, or 1.7pc, to $103.24.

Still, the Brent benchmark was poised for a 4.2pc gain over the week while WTI was on track to finish the week up 9.2pc.

“Thursdays sharp reversal underscores a market that is taking the stairs up but risks the elevator down on any sudden easing headline, making conditions exceptionally challenging for traders,” says Ole Hansen at Saxo Bank.