Brent crude prices dipped nearly $2 on Friday after the White House signaled a delay in deciding U.S. involvement in the escalating Israel-Iran conflict. Despite the decline, Brent remains on track for its third consecutive weekly gain, buoyed by geopolitical tensions in the Middle East.
As of 02:55 GMT, Brent crude futures fell $1.89, or 2.4%, to $76.96 a barrel. Still, they were up 3.8% for the week. U.S. West Texas Intermediate (WTI) crude for July, which expires Friday and didn’t trade Thursday due to a holiday, rose 53 cents to $75.67. The more liquid August WTI contract edged up 17 cents to $73.67.
Oil prices had surged nearly 3% on Thursday after Israel struck Iranian nuclear sites, prompting Tehran to retaliate with missile and drone attacks, including one on an Israeli hospital. The week-long conflict has heightened fears of a broader regional war.
Market sentiment shifted after the White House stated President Donald Trump would decide on potential U.S. military action within two weeks. Analysts believe this timeline could signal a possible de-escalation, though volatility remains high.
Iran, OPEC’s third-largest producer, pumps around 3.3 million barrels of crude daily. The Strait of Hormuz, a vital chokepoint along Iran’s coast, sees 18 to 21 million barrels of oil transit daily. Any disruption could severely impact global supply.
Analyst Tony Sycamore noted Trump’s two-week deadlines often pass without concrete action, which could keep oil prices elevated. Phil Flynn of Price Futures Group added that while geopolitical risks support crude prices, uncertainty over U.S. involvement tempers bullish momentum.
With the situation in flux, oil markets remain sensitive to political developments, keeping crude prices on edge.