Oil heads for steep weekly losses as Middle East tensions cool

Oil prices posted steep weekly losses Friday as signs of de-escalation between Iran, Israel and the US eased fears of disruptions to global crude supplies, reversing gains made earlier in the week amid heightened Middle East tensions.

International benchmark Brent crude traded at $87.34 per barrel at 2.08 p.m. local time (1108 GMT), down 6.2% from last Friday’s close of $93.09, while US benchmark West Texas Intermediate (WTI) fell 6.4% on a weekly basis to $84.72 per barrel, compared with $90.54 a week earlier.

The market experienced heightened volatility throughout the week, driven largely by developments in the Middle East and their potential impact on global energy flows.

Oil prices rose about 5% on Monday as escalating tensions in the Middle East heightened concerns over potential supply disruptions, while an OPEC+ output increase helped limit stronger gains.

Oil prices fell on Tuesday after Iran and Israel announced a halt to attacks, while comments from US President Donald Trump signaling progress in negotiations with Tehran eased supply disruption concerns. Brent dropped to below $90 per barrel, while WTI fell below $87 on Tuesday.

However, oil prices were mixed on Wednesday as markets weighed renewed supply concerns following fresh US strikes against Iran.

Sentiment shifted again on Thursday, with prices advancing as escalating military exchanges between the US and Iran and renewed tensions surrounding the Strait of Hormuz heightened fears of disruptions to global crude supplies, while fresh US inventory data added support to the market.

Oil prices extended losses on Friday after US President Donald Trump said planned strikes on Iran had been cancelled and that a deal to permanently end the US-Israeli war on Iran could be signed within days, easing fears that tit-for-tat attacks earlier this week would spiral into a broader conflict.

• International benchmark Brent crude
• US benchmark West Texas Intermediate (WTI)