Oil Prices Fall as US-Iran Tensions Weigh Against Regional Supply Recovery
The price of oil fell on Friday as investors weighed the risk of further escalation in the Middle East conflict against signs of recovery in regional supply flows.
The December futures contract for US crude oil dropped 2.7% to $99.69 per barrel, while West Texas Intermediate (WTI) crude futures slipped 3.5% to $89.64 per barrel.
The decline came after a surge of more than $4 and $2 respectively on Thursday, when the Wall Street Journal reported that Washington was considering deploying another aircraft carrier group and additional troops to the Middle East.
President Donald Trump's suggestion in Time magazine that US military action against Iran could restart after the midterm elections in November added to concerns about oil flows from the region.