Oil Prices Slide as Middle East De-escalation Hopes Ease Market Fears

INA

Oil prices.

Oil prices edged lower during Asian trading on Friday and were on course for a weekly decline, as optimism over easing tensions in the Middle East reduced the risk premium that had supported markets in recent sessions.

Brent crude futures for May delivery slipped 0.7 per cent to $107.80 a barrel, while West Texas Intermediate (WTI) crude fell 0.8 per cent to $93.72 a barrel.

Both benchmarks were set to record weekly losses of more than 4 per cent.

US President Donald Trump said he would pause strikes on Iranian energy infrastructure for 10 days at Tehran’s request.

He added that negotiations with Iran were progressing “very well”, fuelling hopes of a diplomatic breakthrough, although Iranian officials struck a more cautious tone regarding the talks.

The announcement helped ease fears of potential supply disruptions in the Middle East, particularly around the Strait of Hormuz, a critical chokepoint through which a large share of global oil supplies passes.

Oil markets have been highly volatile in recent weeks, with prices surging amid rising tensions involving the United States, Israel and Iran, alongside concerns over disruptions to shipping routes and energy infrastructure.

However, repeated signs of de-escalation have prompted pullbacks, as traders reassess the likelihood and duration of any supply shocks. Earlier this week, crude prices dropped sharply after Trump delayed previously planned strikes.

Despite the recent decline, oil prices remain elevated compared with levels seen before the escalation of the conflict.


PUKMEDIA