SINGAPORE: Brent crude prices fell nearly $2 on Friday, reversing the previous session’s gains, after the White House indicated President Donald Trump would delay a decision on whether the US would directly join the escalating Israel-Iran conflict.
Brent futures dropped $1.89, or 2.4 percent, to $76.96 a barrel by 5:55 a.m. Saudi time, though they remained up 3.8 percent for the week — marking a third consecutive weekly gain.
US West Texas Intermediate (WTI) crude for July, which expires Friday and did not trade on Thursday due to a US holiday, rose 53 cents to $75.67. The more actively traded August WTI contract edged up 17 cents to $73.67.
Oil markets had surged on Thursday following Israeli airstrikes on Iranian nuclear facilities and Tehran’s retaliatory drone and missile attack on Israel, including an overnight strike on a hospital. However, prices cooled after the White House suggested a window remained open for diplomatic de-escalation.
“Oil prices surged amid fears of increased US involvement in Israel’s conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,” noted Phil Flynn of the Price Futures Group.
Iran, OPEC’s third-largest oil producer, pumps around 3.3 million barrels per day. With between 18 million to 21 million bpd of global oil supply passing through the nearby Strait of Hormuz, markets remain nervous about any conflict-induced disruption to shipments.
Analyst Tony Sycamore of IG said Trump’s two-week timeline resembled past decision-making strategies that ended without direct action. “If history repeats, oil could hold at current levels or even build on gains,” he said.
