Key Points
- Brent slips below recent highs
- Diplomacy hopes ease supply concerns
- Middle East risks continue to support prices
- Markets await US-Iran talks
ISLAMABAD: International oil prices eased after reports that US President Donald Trump had paused plans for new strikes on Iran, raising hopes for renewed diplomacy and reducing fears of further disruptions to global energy supplies.
Brent crude, the international benchmark, traded below the $100-per-barrel level after briefly climbing above it earlier when the US continued its strike on Iran for at least a fortnight. Likewise, retaliations from Iran had heightened the supply disruption fears.
Meanwhile, US West Texas Intermediate (WTI) also retreated from recent highs. Despite the pullback, both benchmarks remain on course for strong weekly gains amid persistent tensions in the Middle East.
The decline followed reports that the White House had suspended further military action against Iran for now to allow space for diplomatic efforts. However, Trump has warned that military options remain on the table should negotiations fail.
Analysts said the move has prompted traders to unwind part of the geopolitical risk premium that had driven oil prices higher in recent days.
Oil market concerns
However, concerns over shipping through the Strait of Hormuz and renewed Houthi attacks on Saudi oil infrastructure continue to underpin the market, according to The Guardian.
Brent crude settled at $100.69 per barrel on Friday, and in the kerb market it fell below the 100-barrel critical mark, according to the off-market traders.
The $100-a-barrel close is Brent Crude’s highest since May. Meanwhile, WTI ended at $92.19 a barrel, reflecting continued concerns over supply disruptions despite easing fears of an immediate escalation between Washington and Tehran.
Market participants are now closely watching whether the pause in hostilities leads to substantive talks between the United States and Iran, with analysts warning that any renewed attacks in the region could quickly send prices back into triple digits.
