Oil prices saw a decline on Friday following a delay in the U.S. decision regarding its involvement in the ongoing Israel-Iran conflict. Despite this dip, prices were still on track for a third consecutive weekly increase. Brent crude futures dropped $2, or 2.5%, settling at $76.85 a barrel by 0648 GMT.
Nonetheless, this meant that Brent was poised to gain over 3% for the week. In contrast, U.S. West Texas Intermediate crude for July fell by 14 cents, or 0.2%, to $75, as it did not settle on Thursday due to a public holiday. The more actively traded August contract rose slightly by 0.3%, or 19 cents, reaching $73.69.
Notably, oil prices had surged almost 3% on Thursday following Israeli attacks on nuclear targets in Iran, which provoked retaliatory strikes from Iran on Israel. The conflict, which has continued for over a week, shows no signs of abating. Iran, the third-largest producer in OPEC, has garnered attention amidst tensions.
A recent statement from the White House indicated that President Donald Trump is expected to decide on the U.S. role in the conflict within two weeks. Phil Flynn, an analyst at The Price Futures Group, noted that oil prices had risen due to fears of greater U.S. involvement, although the White House suggested a possible pathway to de-escalation. Tony Sycamore, an analyst at IG, pointed out that previous deadlines set by Trump often pass without definitive action.
This could allow crude oil prices to remain high and even build upon recent gains. Emril Jamil, an oil research analyst at LSEG, mentioned that OPEC+’s strong intention to increase production may also be causing market anxiety.