Oil Dips Amid Slow US Movement on Iran

Oil prices edged lower on Friday, finishing near six-month highs but posting their first weekly gain in three weeks, as markets assessed the likelihood that the United States will delay any potential military action against Iran until at least next week.

Brent crude futures slipped 0.27%, to settle at $71.47 per barrel. U.S. West Texas Intermediate (WTI) crude fell 14 cents, or 0.21%, to $66.29 per barrel.

Despite Friday’s decline, both benchmarks gained roughly 5.3% over the week.

Latest Oil Prices:

WTI Crude • 66.48 +0.08 +0.12%

Brent Crude • 71.66 0.00 0.00%

Murban Crude • 71.95 -0.13 -0.18%

Louisiana Light • 67.58 +3.00 +4.65%

Bonny Light • 78.62 -2.30 -2.84%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 1.997 -0.009 -0.46%

Natural Gas • 3.047 +0.051 +1.70%

Phil Flynn, senior analyst at Price Futures Group, said markets remain caught between anticipating possible U.S.-Iran tensions and dismissing the prospect of imminent military escalation.

“We’re stuck between expecting something to happen between the U.S. and Iran, and denying the likelihood of any attack,” Flynn said.

Earlier in the day, the Supreme Court of the United States ruled that President Donald Trump had exceeded his authority by using emergency powers to impose sweeping tariffs on multiple countries.

However, the decision had little immediate impact on oil markets.

“The tariff ruling didn’t seem to move the market much,” Flynn noted. “There’s an expectation that tariffs will be handled another way.”

Trump earlier warned that “bad things will happen” to Iran if no agreement is reached to halt the Islamic Republic’s nuclear development. Meanwhile, Iran’s foreign minister said Friday that a draft response to nuclear negotiations is expected within days, as Trump signaled he is considering limited military strikes.

Iran, one of the world’s major oil producers, sits across from the oil-rich Arabian Peninsula along the Strait of Hormuz, a strategic chokepoint through which roughly 20% of global oil supplies transit.

Any military conflict in the region could disrupt flows and sharply lift prices.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said markets are awaiting clarity. “If we take Trump’s words seriously, the market is tense. It’s a wait-and-see day,” Hansen said.

Saxo Bank data showed that traders and investors have increased call option purchases on Brent crude in recent days, effectively betting on higher prices.

Oil prices also drew support from tightening supply signals. Data from the U.S. Energy Information Administration (EIA) on Thursday showed U.S. crude inventories fell by around 9 million barrels, alongside rising refinery utilization and export levels.

Still, concerns about oversupply linger. Market participants are closely watching discussions within OPEC+ over a potential resumption of output increases starting in April.

Analysts at JPMorgan Chase, Natasha Kaneva and Lyuba Savinova noted that the oil surplus that emerged in the second half of 2025 persisted into January and is likely to continue.

“Our projections indicate a sizable surplus later this year,” they said, adding that production cuts of up to 2 million barrels per day may eventually be needed to prevent excessive inventory accumulation by 2027.