Brent Crude Slips Below $98 as Geopolitical Tensions Escalate
Oil prices dropped sharply on Friday, July 24, following a week of strong gains, but remain poised for their biggest weekly advance in months amid escalating US-Iran tensions.
The global benchmark Brent crude futures fell 3.6% to $97.10 per barrel, while US West Texas Intermediate (WTI) crude declined 3.4% to $89.07 per barrel, leaving the contracts up roughly 8% and almost 10% for the week respectively.
The week's gains were fueled by growing fears that a conflict between Washington and Tehran could disrupt energy supplies from the Middle East, particularly through the Strait of Hormuz, a vital artery for global oil shipments.
Market sentiment remained highly sensitive after US President Donald Trump said he was considering launching a military offensive against Iran that would be 'larger than anything seen so far,' signaling a potential escalation in regional hostilities.