Brent crude futures fell below US$97 a barrel on Friday, reversing recent gains driven by geopolitical anxiety in the Red Sea.
The decline followed statements from Houthi rebels indicating they were not actively blocking commercial traffic through the strategic Bab al-Mandeb Strait, a key chokepoint for global energy shipments.
The clarification helped alleviate immediate fears of a sustained supply disruption, prompting traders to unwind risk premiums built into energy contracts over the preceding sessions.
The retreat in oil prices contributed to a mixed close for global equity markets, which capped a turbulent week for technology shares.
While energy names saw pressure from the lower commodity benchmark, broader indexes struggled to find direction as skepticism grew regarding the sustainability of AI-fueled gains that have propelled major benchmarks to record highs.
The S&P 500 and Dow Jones Industrial Average posted modest moves, reflecting a cautious sentiment as investors balanced the easing shipping risk against ongoing macroeconomic uncertainties.