U.S. crude oil futures fell over 1% on Friday following reports that Qatar urged Iran to refrain from attacking Israel during ongoing Gaza cease-fire negotiations. This call for de-escalation came after the first day of talks in Doha, where Qatar’s prime minister warned Iranian leaders of the consequences of escalating tensions.
The U.S. benchmark, West Texas Intermediate (WTI), ended the week slightly down by 0.25%, closing at $76.65 per barrel. Brent crude also saw a minor decrease, while other energy prices, including gasoline and natural gas, faced declines.
The market reaction reflects a waning risk premium as traders seem less concerned about immediate geopolitical threats. Earlier in the week, fears of an imminent Iranian attack on Israel had driven oil prices up by more than 4%. However, with no attack materializing and concerns over weakening oil demand in China, prices have since pulled back.
Analysts suggest that the market is currently balancing between geopolitical risks and underlying economic fundamentals, with the latest selloff driven by the ongoing cease-fire talks and the lack of retaliation by Iran. As negotiations in the Middle East continue, the oil market remains sensitive to developments in the region.
