Oil Extends Losses as U.S. Calls Off Planned Strikes on Iran

PUKMEDIA

Oil field.

Oil prices fell over $1 on Friday, extending losses from the ‌previous session after U.S. President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.

According to Reuters report, Brent futures fell $1.83 or 2% to $88.55 a barrel at 0410 GMT, while U.S. West Texas Intermediate (WTI) crude dropped $1.60, or 1.8%, to $86.11.

President Trump, who had threatened to hit Iran "very hard", called off planned strikes on Thursday, saying discussions with Iran had progressed and a peace deal that would reopen the Strait of ⁠Hormuz to shipping could be signed as soon as this weekend. Iran's semi-official Fars news agency reported that Tehran had not approved the text of any agreement.

On Thursday, Iran announced "the closure" of the Strait of Hormuz, through which vessel traffic was already severely limited, saying it would fire on any ship trying to pass through the waterway. The strait normally carries a fifth of global oil and ‌liquefied natural ⁠gas shipments and Tehran's months-long blockade has kept energy prices elevated.

State media reported on Friday that Iranian forces prevented a tanker from transiting the Strait of Hormuz without coordination.

The U.S. military said on social media that commercial ships continued to transit the waterway.



PUKMEDIA