Oil prices fell on Friday after the White House delayed a decision on U.S. involvement in the Israel-Iran conflict, but remained on course for a third consecutive weekly rise.
Brent crude futures fell $2, or 2.5%, to $76.85 a barrel by 0648 GMT but still looked set to gain more than 3% on the week.
U.S. West Texas Intermediate crude for July – which did not settle on Thursday as it was a U.S. holiday and expires on Friday – was down 14 cents, or 0.2%, to $75.
The more liquid August contract was up 0.3%, or 19 cents, to $73.69.
On Thursday prices jumped almost 3% after Israel bombed nuclear targets in Iran and Iran fired missiles and drones at Israel. The week-old war between Israel and Iran showed no signs of either side backing down.
Iran is OPEC’s third-largest producer.
Brent futures trimmed previous session gains following the White House’s comments that President Donald Trump would decide whether the U.S. will get involved in the Israel-Iran conflict in the next two weeks.
“Oil prices surged amid fears of increased U.S. involvement in Israel’s conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,” said Phil Flynn, analyst at The Price Futures Group.
“The “two-week deadline” is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action,.. which would see the crude oil price remain elevated and potentially build on recent gains,” said Tony Sycamore, analyst at IG.
Emril Jamil, oil research analyst at LSEG, said the “unwavering determination” of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to increase output “may have added jitters to the market”.
