Oil Prices Slip as US-Iran Tensions Weigh Against Recovering Supply
Oil prices slipped on Friday as investors weighed the risks of a further escalation in US-Iran tensions against signs that some Middle East supply flows were recovering.
The December futures contract fell 0.7% to $101.61 per barrel, while the January contract dropped 0.8% to $92.17 per barrel.
The decline came after a surge in prices on Thursday, which saw both benchmarks jump by over $4 and $2 respectively.
The gains were driven by concerns that renewed military action against Tehran could threaten oil flows from the region, particularly through the Strait of Hormuz, a key shipping route for global energy supplies.
Despite these concerns, regional exports have shown signs of recovery, with Saudi Arabia resuming operations on its East-West Pipeline and tanker loadings from Yanbu after earlier disruptions.