Global crude oil prices declined on Friday, extending expectations of a second consecutive weekly loss as investors assessed the impact of the continued United States blockade of Iran and the possibility of reduced military escalation in the Middle East.
Brent crude futures fell by 28 cents, or 0.29 per cent, to $95.54 per barrel, while US West Texas Intermediate (WTI) crude declined by 56 cents, or 0.63 per cent, to $88.18 per barrel at 0527 GMT.
The declines reversed gains recorded over the preceding two trading sessions, reflecting changing market expectations about the potential impact of the prolonged conflict on crude production, transportation and global supply.
According to market analysts, the continued US blockade of Iran has eased some concerns about an immediate escalation of military operations, raising expectations that Washington could rely more heavily on economic sanctions and restrictions on Iranian oil shipments.
US President Donald Trump reportedly indicated that an agreement with Iran was not necessary to end the conflict, reinforcing expectations that the administration could maintain its current pressure strategy.
Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet, said expectations of reduced military escalation had encouraged the market to consider the possibility of Washington relying more on economic restrictions rather than expanding military operations.
However, geopolitical risks continued to provide support for oil prices, with attacks on shipping and energy infrastructure raising concerns about potential disruptions to crude supplies from the Middle East.
Strikes on Saudi Arabian infrastructure by Yemen’s Iran-backed Houthi movement and reported attacks on tankers transporting crude from the Gulf have kept traders cautious about the security of critical oil supply routes.
The Strait of Hormuz remains particularly important to the global energy market because of its strategic role in the transportation of crude oil and other petroleum products from major Gulf producers to international markets.
Any prolonged disruption to shipping through the region could affect global supply availability, increase transportation costs and trigger renewed volatility in oil prices.
The market is therefore balancing expectations of reduced military escalation against the possibility of further attacks on energy infrastructure and commercial vessels.
The latest decline also reflects the broader volatility that has characterised oil trading amid changing diplomatic and military developments in the Middle East.
For oil-importing countries such as Nigeria, movements in international crude prices remain important for domestic fuel costs, foreign exchange earnings and government revenue projections.
While lower crude prices could ease some pressure on international energy costs, sustained uncertainty around Middle Eastern supply routes means the market remains vulnerable to sudden price movements.
