Brent crude falls over 2% as easing geopolitical tensions reduce fears of supply disruption.
Image: BPN
Oil prices dropped more than 2% on Friday, extending losses from the previous session after US President Donald Trump called off planned strikes on Iran, easing concerns of a wider escalation in the Middle East.
Brent crude futures fell $2.11, or 2.3%, to $88.27 per barrel, while US West Texas Intermediate (WTI) dropped $1.90, or 2.2%, to $85.81 per barrel.
The decline followed reports that diplomatic discussions with Iran had progressed, with suggestions a potential deal could reopen the Strait of Hormuz to shipping. However, Iranian officials said no final decision had been made, keeping uncertainty in the market.
Analysts noted that while prices have eased, risks remain elevated due to fragile geopolitical conditions and the importance of the Strait of Hormuz, a key route for global oil and LNG shipments.
Despite the current pullback, market watchers warned that any breakdown in negotiations could quickly reverse gains and push prices higher again, depending on developments in the coming weeks.
