Crude oil prices retreated sharply on Thursday, with Brent futures dropping more than 3% to trade at $97.10 a barrel.
The sell-off erased much of the week’s gains, driven by emerging reports that former U.S. President Donald Trump has signaled hesitancy to resume full-scale military action against Iran.
Brent crude remains on course for a 10% weekly gain, while West Texas Intermediate (WTI) is set for an 8% increase, underscoring that the underlying supply risk premium has not fully dissipated.
This development comes despite heightened tensions in the Middle East and ongoing disruptions to shipping routes in the Red Sea.
The price pullback reflects a shift in market sentiment regarding the immediate risk of a broader regional conflict.
While fears of a major U.S. attack on Iran had previously fueled a rally, the suggestion of diplomatic restraint or military caution has allowed traders to take profits.
Brent crude remains on course for a 10% weekly gain, while West Texas Intermediate (WTI) is set for an 8% increase, underscoring that the underlying supply risk premium has not fully dissipated.