Oil prices are showing a significant decline at the end of the week, approaching the steepest weekly drop in the last six months. The main reason for this is the announcement by US President Donald Trump regarding progress in negotiations with Iran and the implementation of a 10-day pause in attacks on the energy facilities of that country.
This is reported by Finway
Global Oil Price Dynamics
On Friday, Brent crude futures fell by 0.8%, reaching $107.17 per barrel, while WTI prices dropped by 1.1% to $93.46 per barrel. Both benchmarks lost 4.6% over the week, despite a sharp rise on Thursday due to concerns about escalating tensions in the Middle East.
“Analysts note that the market is reacting not only to headlines but also to the potential long-term consequences of the war: any damage to oil infrastructure or a prolonged conflict could sharply change prices.”
Following the announcement of the pause in attacks, the US has deployed thousands of troops to the Middle East. The American command is also considering the possibility of conducting a ground operation aimed at capturing Iran’s strategic oil hub—the island of Kharg.
Analysis and Forecasts
Experts at Macquarie Group believe that if the conflict is resolved quickly, oil prices could decrease and stabilize at pre-conflict levels. However, if the standoff drags on until the end of June, a barrel of oil could cost up to $200.
Mukesh Sahdev, CEO of XAnalysts, emphasizes that the market is under pressure: Asian countries are actively using reserves and adjusting their purchases to minimize risks due to instability in the energy market.