Oil prices fell in Asian trading on Friday, extending losses from the previous session, as concerns over potential supply disruptions eased following signs that the likelihood of a U.S. military strike on Iran had receded.
Brent crude slipped 21 cents, or 0.3 per cent, to $63.55 per barrel, while U.S. West Texas Intermediate (WTI) declined by 15 cents, or 0.3 per cent, to $59.04 per barrel as of 0418 GMT.
Both benchmarks had climbed to multi-month highs earlier in the week after protests erupted in Iran and U.S. President Donald Trump signalled the possibility of military action against the country, raising fears of supply disruptions in the oil-rich Middle East.
However, late on Thursday, Trump said Tehran’s crackdown on protesters was easing, reducing market anxiety over potential strikes that could impact global oil supply flows.
Despite Friday’s pullback, Brent crude remained on course for a fourth consecutive week of gains, reflecting lingering geopolitical risks and earlier price momentum.
BMI analysts said in a note that oil prices had given back some of their recent gains but remained higher than a week ago, with the decline triggered by Trump’s indication that he would hold off on military action against Iran.
“Given the potential political upheaval in Iran, oil prices are likely to experience greater volatility as markets digest the potential for supply disruptions,” the analysts said.
Market watchers note that while immediate supply fears have eased, geopolitical developments in the region remain a key driver of oil price movements in the near term.
