Brent crude futures dropped by $1.36, or 1.3%, to $107.29 per barrel as of 0330 GMT, while U.S. West Texas Intermediate (WTI) crude declined $1.92, or 2.0%, to $94.22. The pullback reflects a partial easing of the “war premium” that had driven prices higher earlier in the week.
The decline comes as major global economies—including United Kingdom, France, Germany, Italy, Netherlands, and Japan—signaled readiness to support efforts aimed at ensuring safe maritime passage through the Strait of Hormuz, a critical route for roughly 20% of global oil and liquefied natural gas shipments.
In Washington, U.S. Treasury Secretary Scott Bessent indicated that the United States is considering measures to boost supply, including the possible removal of sanctions on Iranian oil currently stranded on tankers. He also suggested that additional crude releases from the Strategic Petroleum Reserve could be deployed to stabilize markets.
Despite Friday’s dip, Brent crude remained on track for a weekly gain of nearly 4%, driven largely by supply disruptions following recent attacks by Iran on oil and gas infrastructure in Gulf states. The strikes forced production shutdowns and heightened fears of prolonged supply constraints. In contrast, WTI was set to post a weekly loss of more than 4%, marking its first decline in five weeks.
Market analysts say the situation remains fragile. Priyanka Sachdeva of Phillip Nova noted that while diplomatic signals have helped ease immediate concerns, the recovery of disrupted logistics could take time. She warned that any further attacks on export infrastructure or tanker routes could trigger sharp price spikes, while sustained diplomatic engagement may help contain volatility.
Meanwhile, Donald Trump disclosed that he had urged Benjamin Netanyahu to refrain from further strikes on Iranian energy facilities, in a bid to prevent escalation.
On the supply front, output from North Dakota—the third-largest oil-producing state in the U.S.—is expected to rise in the coming months as operators restart idle wells and seasonal restrictions ease, according to the state’s Department of Mineral Resources. However, officials cautioned that production growth will depend on how long elevated prices persist, noting that many oil producers have already finalized their spending plans.
With geopolitical risks still looming over the Strait of Hormuz, analysts say oil markets are likely to remain highly sensitive to both diplomatic developments and supply disruptions in the weeks ahead.