Oil Falls as US, Israel Allay Market Fears

WTI crude futures fell below $94 per barrel on Friday after climbing as high as $101 in the previous session, as recent remarks from the US and Israel helped ease concerns over further damage to Middle Eastern energy infrastructure. US President Donald Trump said Washington is not considering deploying ground troops in the region, while Treasury Secretary Scott Bessent suggested Iran’s regime could face internal collapse and noted that the US is exploring the removal of sanctions on Iranian oil. Meanwhile, Israeli Prime Minister Benjamin Netanyahu said Israel would refrain from additional attacks on Iranian energy facilities and that the war could end sooner than expected, noting Iran’s reduced capacity to enrich uranium or produce ballistic missiles. Despite the pullback, WTI futures remain up about 40% since the start of the conflict, as the disruption has effectively shut the Strait of Hormuz and forced major regional producers to sharply curb output.

US crude futures gave up earlier gains to fall as much as 2% to $94 per barrel, as traders digested remarks from President Donald Trump and Treasury Secretary Scott Bessent. Trump said the US is not considering deploying ground troops in the Middle East, while Bessent suggested Iran’s regime could collapse internally. US intelligence chief Tulsi Gabbard also noted differing objectives between the US and Israel in their campaign involving Iran. Oil prices have surged roughly 50% since the war began, as the Iran conflict effectively shut the Strait of Hormuz and prompted major Middle Eastern producers to significantly curb output.

WTI crude futures rose to $99 per barrel on Thursday, extending gains as fresh attacks on key energy infrastructure in the Middle East heightened concerns over disruptions to global oil and gas flows. Iran launched missile strikes on a Qatari facility housing the world’s largest LNG export plant, marking one of several energy assets Tehran vowed to target following an Israeli strike on Iran’s South Pars gas field. US President Donald Trump said he had prior knowledge of the Israeli attack on the South Pars field but urged against further strikes on Iranian energy sites. Meanwhile, Trump temporarily waived the Jones Act to help reduce the cost of transporting oil, gas, and other commodities across the US, allowing foreign-flagged vessels to operate between US ports for the next 60 days. Oil prices have surged roughly 50% since the war began, as the Iran conflict effectively shut the Strait of Hormuz and prompted major Middle Eastern producers to significantly curb output.