Oil Prices Retreat from $100 Amid Middle East Tensions
Oil prices retreated from their recent peak of above $100 per barrel on Friday, but still managed to eke out a weekly gain due to ongoing concerns about disrupted energy flows in the Red Sea and escalating tensions between the US, Israel, and Iran.
Brent futures fell nearly 4% to $96.70 per barrel, while West Texas Intermediate (WTI) futures dropped around 3.42% to $89.04 per barrel. Despite these losses, both contracts remain on track for a weekly gain of over 8% and 9.7%, respectively.
The price volatility is largely driven by the ongoing conflict in the Middle East, with Houthi attacks on Saudi oil tankers and US President Donald Trump's vow to punish Iran for its involvement. Analysts say that each additional month of disruption to oil supply could add around $7-$8 per barrel to Brent prices.
While some analysts have expressed caution about the impact of these disruptions, others remain bullish on the short-term outlook for oil prices. 'Major hubs of oil production or supply routes are surrounded by war... The short-term outlook is bullish,' said PVM Oil Associates analyst John Evans.