Oil prices fall as US delays decision on direct Iran involvement
SINGAPORE: Oil prices fell on Friday after the White House delayed a decision on U.S. involvement in the Israel-Iran conflict yet they remained on course for a third consecutive weekly rise.
Brent crude futures were down $2.57, or around 3.3%, to $76.28 a barrel by 1204 GMT but still set to gain nearly 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 up marginally at $75.19.
The more liquid August contract was up around 0.4%, or 31 cents, to $73.19.
On Thursday prices jumped almost 3% after Israel bombed nuclear targets in Iran, while Iran - OPEC's third-largest producer - fired missiles and drones at Israel. Neither side showed any sign of backing down in the week-old war.
Brent prices retreated after the White House said President Donald Trump would decide whether the U.S. will get involved in the Israel-Iran conflict in the next two weeks.
Oil prices jump
'However, while Israel and Iran carry on pounding away at each other there can always be an unintended action that escalates the conflict and touches upon oil infrastructure,' PVM analyst John Evans said.
Iran has in the past threatened to close the Strait of Hormuz, a vital route for Middle East oil exports.
However, oil exports so far have not been disrupted and there is no shortage of supply, said Giovanni Staunovo, an analyst at UBS.
'The direction of oil prices from here will depend on whether there are supply disruptions.'
An escalation of the conflict in such a way that Israel attacks export infrastructure or Iran disrupts shipping through the strait could lead to $100 per barrel of oil being a reality, said Panmure Liberum analyst Ashley Kelty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
21 minutes ago
- Express Tribune
Rubio praises Pakistan's regional peace efforts in call with PM Shehbaz
A telephonic conversation was held between Prime Minister Shehbaz Sharif and US Secretary of State Marco Rubio on June 20, 2025. Photo: AFP/ APP Listen to article Prime Minister Shehbaz Sharif received a telephone call from US Secretary of State Marco Rubio on Friday, during which both sides discussed a wide range of regional and global issues in what was described as a cordial and friendly atmosphere. According to a statement issued by the Prime Minister's Office, the PM underscored that the escalating Iran-Israel crisis could only be resolved through dialogue and diplomacy. Prime Minister speaks with the U.S. Secretary of State Prime Minister Muhammad Shehbaz Sharif received a telephone call from U.S. Secretary of State Marco Rubio, this evening. During their warm and cordial conversation, the Prime Minister conveyed his best wishes for President… — PTV News (@PTVNewsOfficial) June 20, 2025 He reaffirmed Pakistan's commitment to playing a constructive role in all peace efforts amid a situation that poses serious concerns not only for the region but for the world at large. PM Shehbaz conveyed his best wishes for US President Donald Trump and lauded his courageous leadership. He also appreciated Rubio's active diplomacy, particularly his role in facilitating the ceasefire agreement between Pakistan and India. Highlighting Trump's positive statements on Pakistan, the PM called them encouraging steps toward long-term peace in South Asia. He stressed that sustainable peace could only be achieved through meaningful dialogue between Pakistan and India. In this context, he reiterated Pakistan's readiness to engage in talks with India on all outstanding issues, including Jammu and Kashmir, the Indus Waters Treaty, trade, and counterterrorism cooperation. Read: Trump calls meeting COAS Munir an honour at White House luncheon The situation in the Middle East also featured prominently in the discussion. PM Shehbaz reiterated that the only viable solution lies in peaceful dialogue and diplomatic engagement. He reaffirmed Pakistan's willingness to play a constructive role in defusing tensions. On economic matters, he referred to Trump's interest in strengthening bilateral trade and expressed Pakistan's desire to expand cooperation with the United States in key sectors such as trade, investment, energy, minerals, rare earth elements, and information technology. Reaffirming Pakistan's resolve to eradicate terrorism, the PM spoke about ongoing efforts to eliminate the threat posed by extremist groups such as the Balochistan Liberation Army (BLA), Tehreek-i-Taliban Pakistan (TTP), and others. Read More: Field Marshal Munir engages US think tanks on Pakistan's role in global peace In response, Rubio appreciated Pakistan's counterterrorism efforts and assured the United States' full support in this regard. PM Shehbaz also expressed satisfaction over the outcome of the recent meeting between Trump and Chief of Army Staff Field Marshal Asim Munir in Washington describing it as both pleasant and productive. Both sides agreed on the need to translate the recent progress in bilateral dialogue into concrete, practical cooperation across all areas of mutual interest. PM Shehbaz stressed the importance of maintaining high-level contacts and extended a renewed invitation to Trump to undertake an official visit to Pakistan. He expressed eagerness to meet with the US president soon and invited Rubio to visit Pakistan in the near future as well. Also Read: UN chief urges parties to 'give peace a chance' on Iran-Israel war In closing, US secretary of state thanked the PM for taking his call and expressed the United States' strong desire to deepen cooperation with Pakistan across all areas of shared interest. He also acknowledged Pakistan's continued efforts in maintaining the ceasefire with India and playing a positive role in promoting peace, particularly given its strong relations with Iran. Rubio emphasised that the United States remains committed to working closely with Pakistan to promote both regional and global peace and stability.
Business Recorder
an hour ago
- Business Recorder
Guterres urges ‘give peace a chance' in Israel-Iran conflict
UN Secretary-General Antonio Guterres warned on Friday that expansion of the Israel-Iran conflict could ignite a fire no one can control and called on parties to conflict and potential parties to the conflict to 'give peace a chance.' Israel slams UN rights council for giving floor to Iran ahead of nuclear talks Guteres made the remarks to the United Nations Security Council as European foreign ministers met their Iranian counterpart on Friday hoping to test Tehran's readiness to negotiate a new nuclear deal despite there being scant prospect of Israel ceasing its attacks soon.
Business Recorder
an hour ago
- Business Recorder
Wall Street edges up with Trump's Middle East decision in focus
Wall Street's main indexes nudged higher on Friday, tracking strength in global stocks after President Donald Trump held off from making an immediate decision on U.S. involvement in the Israel-Iran war. Trump will take a call in the next two weeks, the White House said on Thursday, as hostilities between the two Middle Eastern countries approached their second week. Markets have been on edge as Trump has kept the world guessing on his plans - veering from proposing a swift diplomatic solution to suggesting the U.S. might join the fight as Israel aims to suppress Tehran's ability to build nuclear weapons. A senior Iranian official told Reuters Tehran was ready to discuss limitations on its uranium enrichment, but zero enrichment will be rejected 'especially now under Israel's strikes'. Foreign Minister Abbas Araqchi has arrived in Geneva to meet European counterparts, who are hoping to establish a path back to diplomacy. 'Any news flow that's going to lean in the direction of de-escalation is going to be a market positive and we're seeing that to a certain extent here,' said Art Hogan, chief market strategist at B. Riley Wealth. Concerns about price pressures in the U.S. were also in focus after Federal Reserve policymakers on Wednesday warned inflation could pick up pace over the summer as the economic effects of Trump's steep import tariffs kick in. They kept interest rates unchanged. Wall St indexes rise ahead of Fed's rate verdict On Friday, Fed governor Chris Waller said the central bank should consider cutting interest rates at its next meeting given recent tame inflation data and because any price shock from tariffs will be short-lived. At 10:06 a.m. ET, the Dow Jones Industrial Average rose 123.38 points, or 0.29%, to 42,295.04, the S&P 500 gained 13.34 points, or 0.22%, to 5,994.21 and the Nasdaq Composite gained 38.74 points, or 0.20%, to 19,585.01. Nine of the 11 major S&P 500 sub-sectors rose. Real estate led sector gains with a 0.7% rise. On the flip side, healthcare stocks lost 0.5%. All three main indexes are set for weekly gains. Investors are also bracing for any potential spike in volatility from Friday's 'triple witching' - the simultaneous expiration of single stock options, stock index futures, and stock index options contracts that happens once a quarter. Among megacap stocks, Apple advanced 1.3%. Kroger rose 6.4% after the grocery chain increased its annual identical sales forecast. Mondelez International gained 2.4% after brokerage Wells Fargo upgraded the Cadbury parent to 'overweight' from 'equal-weight'. Accenture fell 7.2% after the IT services provider said new bookings decreased in the third quarter. Wall Street's strong gains last month, primarily driven by a softening in Trump's trade stance and strength in corporate earnings, had pushed the benchmark S&P 500 index close to its record peaks before the ongoing conflict in the Middle East made investors risk-averse. The S&P 500 index now remains 2.4% below its record level, and the tech-heavy Nasdaq is 2.8% lower. Advancing issues outnumbered decliners by a 2.16-to-1 ratio on the NYSE and by a 1.45-to-1 ratio on the Nasdaq. The S&P 500 posted 12 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 55 new highs and 31 new lows.
