Oil Prices Drop as Trump Delays Iran Strike Decision, but Weekly Gains Hold
Oil prices declined sharply during Asian trading on Friday, pulling back from recent highs after the White House announced that President Donald Trump would delay a decision on potential U.S. military action in the Iran-Israel conflict for at least two weeks.
Despite the dip, crude remained on track for a third consecutive weekly gain, with ongoing tensions in the Middle East keeping markets nervous about potential supply disruptions.
Contributing to the recent upward trend were reports of a significant drawdown in U.S. crude inventories, indicating tightening supply in the world’s largest oil-consuming nation.
Price Movements:
- Brent crude futures for August delivery fell 1.9% to $77.33 per barrel by 21:20 ET (01:20 GMT).
- WTI crude futures, which did not settle Thursday due to a U.S. holiday, rose 0.8% to $74.07 per barrel.
Trump Delays Decision on Iran Strike
The White House confirmed that President Trump will make a final decision on a possible strike against Iran within two weeks, citing ongoing interest in reviving nuclear negotiations with Tehran. This statement eased fears of an immediate escalation after multiple reports suggested the U.S. was preparing for a potential attack.
U.S. involvement would represent a major escalation in the regional conflict. Tensions rose sharply after Israel bombed Iranian nuclear facilities last week, effectively ending nuclear negotiations and pushing the war into its eighth day.
Markets remain focused on whether Israel will target additional Iranian sites, particularly the Fordow facility, Iran’s largest uranium enrichment center.
Crude Still on Track for Weekly Gains
Brent and WTI prices were both up between 3.5% and 4% this week, with crude still supported by geopolitical risk and supply-side concerns.
Last week, prices surged nearly 12%, largely driven by Israel’s attack on Iran. Ongoing fears of disruption to Iranian oil exports—the country being the third-largest producer in OPEC—have underpinned the rally.
There is also the looming risk of additional U.S. sanctions on Iranian oil exports in response to the conflict.
Separately, U.S. data showed a larger-than-expected 10 million barrel drop in domestic crude inventories, adding further support to prices. With summer travel season underway, demand is expected to rise in the U.S.
