Oil prices are on track for their steepest weekly decline since March 2023, as markets erased risk premiums tied to the Iran-Israel conflict, which has so far not disrupted global supply flows.
As of 04:29 GMT on Friday, Brent crude futures rose by 35 cents (0.52%) to $68.08 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 40 cents (0.61%) to trade at $65.64.
Despite the modest gains on the day, both benchmarks are heading for a 12% weekly loss, bringing prices back to pre-conflict levels before Israel launched missile strikes on Iranian military and nuclear targets on June 13.
The week started with a surge, as oil prices hit a five-month high following U.S. attacks on Iranian nuclear sites. However, sentiment shifted sharply on Tuesday, when U.S. President Donald Trump announced a ceasefire between Israel and Iran, calming geopolitical fears.
“There’s no material impact from the crisis on oil flow,” noted traders and analysts, attributing the sharp pullback to fading supply concerns.
With no visible disruptions to global oil shipments, markets quickly unwound the geopolitical premium that had driven prices higher earlier in the week.
The sharp correction underscores the sensitivity of oil markets to geopolitical events, and the rapid repricing when perceived threats do not translate into physical supply disruptions.
