Global crude prices edged lower on Friday after a continued surge, as statements from US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu helped ease market concerns over further escalation in energy infrastructure attacks.
Brent crude slipped toward $107 a barrel after its highest close since July 2022, while West Texas Intermediate (WTI) for May hovered around $94. The pullback follows a sharp rally driven by supply disruptions in the Persian Gulf region, according to Bloomberg.
Trump said he is “not putting troops anywhere” when asked about the possibility of deploying US ground forces. Netanyahu, meanwhile, indicated Israel would avoid further strikes on Iranian energy facilities.
The comments came after a wave of attacks earlier this week caused significant damage to key energy assets, including Qatar’s largest liquefied natural gas plant, which may take years to repair.
Crude prices have surged this month, with Brent gaining nearly 50%, amid the near-total disruption of flows through the Strait of Hormuz, a critical route for global oil supplies. The disruption has also widened the price gap between Brent and WTI to about $13 a barrel, reflecting stronger global supply concerns compared to the US market.
“I thought there was a chance it could be much worse,” Trump said during a meeting with Japan’s prime minister. “It’s not bad, and it’s going to be over pretty soon.”
According to Bloomberg, US measures to contain fuel prices, including releasing crude from strategic reserves, have added pressure on WTI, contributing to its weaker performance relative to Brent. Brent is on track for a weekly gain of around 4%, while WTI is heading for a roughly 5% decline.
Meanwhile, European natural gas prices have nearly doubled from pre-conflict levels, while fuel costs have risen globally, raising concerns about inflation.
Netanyahu said Israel had acted independently in targeting Iran’s South Pars gas field earlier but would pause additional energy-related strikes. “I could see this war ending a lot faster than people think,” he said, without offering a timeline.
Meanwhile, US treasury secretary Scott Bessent indicated that Washington is considering steps to ease oil prices, including potentially removing sanctions on Iranian oil and further tapping reserves. A White House official also said there are no plans to restrict US oil and gas exports following discussions with industry leaders.
The International Energy Agency (IEA) has outlined emergency stockpile releases by member countries, with Japan, Canada and South Korea among key contributors. The agency estimates the conflict has disrupted around 10 million barrels per day of output across Gulf producers, marking one of the largest supply shocks in oil market history.
Market participants remain cautious. “As the fighting and the conflict continues and energy infrastructure continues to be in play, it’s going to be very hard for the markets to calm down,” Rebecca Babin of CIBC Private Wealth Group LLC told Bloomberg. “It just becomes a game of what is the next target.”
Analysts say oil markets are likely to remain volatile as long as risks to Gulf infrastructure and shipping routes persist.
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