Oil Prices Dip Amid Escalating Middle East Tensions and Higher Interest Rates
Oil prices dipped on Friday after surging past $100 in the previous session due to escalating Middle East supply risks and expectations of higher US interest rates.
The international benchmark Brent crude traded at $99.92 per barrel, down 0.7% from Thursday's close of $100.69. The US benchmark West Texas Intermediate (WTI) was at $90.53 per barrel, a decrease of around 1.8% from $92.19 on Thursday.
The surge in prices on Thursday was attributed to threats to oil shipments through the Strait of Hormuz and Bab el-Mandeb, as well as fears of attacks on energy infrastructure across the Middle East. The US and Israel had launched a joint offensive against Iran in February, leading to renewed tensions in the region.
US President Donald Trump has been considering launching a new military operation against Iran, which could surpass the scale of the previous strikes. In an interview with Axios, Trump stated that he was close to making a decision on a potential major attack and had warned Tehran that they would be held responsible for any further Houthi attacks on Red Sea shipping.