Oil Prices Hold Losses: WTI Near $59.2 and Brent Around $63.7 as Iran Escalation Risks Ease

New York | London | EcoPulse24

Oil prices stabilized during Friday trading after a steep fall in the previous session, as concerns over an imminent military conflict between the United States and Iran subsided. This reduced the geopolitical risk premium that had recently supported prices.

West Texas Intermediate (WTI) crude contracts traded near $59.2 per barrel, having lost more than 4% on Thursday. Similarly, Brent crude contracts stabilized around $63.7 per barrel after falling over 4% in the previous session.

These moves came after a softening in US statements. President Donald Trump indicated he had received assurances there would be no further killings or executions in Iran, reducing the likelihood of immediate military action. Reports also noted that Israel and several US allies in the Middle East urged Washington to delay any potential strike, fearing Iranian retaliation against their countries.

These developments lessened the perceived risk of disruptions to Iranian oil production or to vital shipping routes in the region, which was directly reflected in oil pricing. Nonetheless, oil prices remain on track for limited weekly gains following last week's rise.

Previously, the market had been supported by civil unrest in Iran, political volatility in Venezuela, and disrupted Kazakh exports via the Black Sea due to logistical, security, and severe weather issues.

Analysis
The price stabilization after the decline reflects a fragile balance between easing geopolitical risk premiums and ongoing supply-side support factors. If the political de-escalation continues, prices may remain relatively stable, while any fresh upward movement would depend on renewed tensions or actual disruptions to oil production or shipping.