Oil Prices Rebound Amid Ongoing Middle East Tensions
Oil prices dropped nearly 3% on Friday as traders took profits after Thursday's rally. Brent crude futures fell $3, or 2.93%, to $97.72 a barrel, while US West Texas Intermediate (WTI) crude futures dropped $2.31, or 2.52%, to $89.87 a barrel.
The decline came despite ongoing concerns over global energy supplies due to geopolitical tensions in the Middle East. The conflict between the United States, Israel, and Iran continues to escalate, with hostilities showing little sign of easing.
US President Donald Trump warned of 'major military punishment' against Iran and the Houthis following recent attacks on Saudi oil tankers in the Red Sea. Iran rejected a US-backed ceasefire proposal delivered through Iraqi Prime Minister Ali al-Zaidi, citing unresolved control of the Strait of Hormuz.
Analysts at Deutsche Bank noted that the most obvious impact of the escalation could be seen in energy prices. Despite heightened geopolitical risks, shipping activity suggested that key maritime routes remain partially operational.