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Oil prices dipped on Friday as traders awaited the U.S. decision on involvement in the Israel-Iran conflict
Crude oil prices softened on Friday (Representational image: AFP)
Crude Oil Prices: Oil prices softened on Friday as traders awaited a decision from the United States regarding its potential involvement in the ongoing Israel-Iran conflict.
At 11:08 am, the Brent August contract on the Intercontinental Exchange was trading at $77.20 per barrel, over 2% lower than its previous close.
White House Press Secretary Karoline Leavitt, quoting US President Donald Trump, said: “Based on the fact that there’s a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks.”
This statement is being viewed as a pressure tactic to nudge Iran toward negotiations. Market watchers pointed out that Trump has employed similar two-week deadlines for major decisions in the past, many of which passed without any significant action. As a result, crude oil prices tend to remain elevated during such periods of strategic ambiguity.
Meanwhile, Iran has issued a warning against any US intervention, stating that such a move would trigger further escalation in West Asia — a region critical to global crude oil supply.
Iran, a key member of the OPEC (Organization of the Petroleum Exporting Countries), is the third-largest oil producer within the bloc, producing around 3.3 million barrels of crude oil per day. Media reports indicated that the country continues to export crude oil, with current weekly loadings at around 2.2 million barrels per day.
“Crude oil remains highly volatile, with prices reacting sharply to developments and statements related to the Israel-Iran conflict,” said Rahul Kalantri, Vice President for Commodities at Mehta Equities. “Yesterday, we saw a sharp jump in crude oil prices… but this morning we are seeing a dip after the White House stated that President Trump will decide on Iran in two weeks, calming immediate fears of escalation.”
Despite the temporary pullback, Kalantri noted that crude is poised for a third consecutive weekly gain.
Supply Disruptions Still a Concern
“The markets remain jittery as risks of supply disruptions from Iran and broader conflict escalation loom large. Geopolitical tensions and supply fears continue to support oil prices despite temporary pullbacks,” Kalantri added.
Sriram Iyer, Senior Research Analyst at Reliance Securities, echoed a similar sentiment, highlighting that intensifying hostilities in West Asia continue to fuel fears of regional supply disruptions, potentially limiting any sharp downside in oil prices.
As of Wednesday, the Indian crude oil basket — the average price at which Indian refiners import crude — stood at $75.91 per barrel. The average price for June so far is $68.58 per barrel, up from $64.04 in May.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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