Oil prices fell more than 1% on Friday, retreating from multi-month highs, even as they remain on track for their strongest gains in years amid geopolitical tensions over a potential U.S. attack on Iran.
Brent crude futures dropped 91 cents to $69.80 a barrel at 03:32 GMT, following a 3.4% rally on Thursday that marked its highest close since July 31. The March contract is set to expire later on Friday, while the more active April contract slid $1.07 to $68.52.
U.S. West Texas Intermediate (WTI) crude fell $1.06 to $64.36 a barrel after rising 3.4% in the previous session to its highest settlement since September 26.
“Prices eased after last night’s rally as anticipation of a possible attack on Iran and the blockage of the Strait of Hormuz has yet to materialise,” said LSEG senior analyst Anh Pham.
Tensions have escalated in the Middle East following a U.S. military buildup, with President Donald Trump urging Iran to reach an agreement on nuclear weapons or face military action. Iran, in response, has warned of a strong retaliation.
The geopolitical risk has contributed to a surge in the oil risk premium, keeping the market on alert as traders weigh potential supply disruptions from the strategic Strait of Hormuz.
