Oil futures drop 2.5% to $92.20 after President Trump confirms no escalation in US-Iran tensions despite recent strikes.
West Texas Intermediate crude futures fell 2.5% to $92.20 in European trading Friday, pressured by an intact month-long ceasefire between the US and Iran. President Trump described Thursday’s strikes near the Strait of Hormuz as a ‘love tap’ and confirmed the truce remains in effect, though he warned of further action if Iran rejects a proposed deal restricting its nuclear program.
The decline follows a period of relative stability, with WTI previously testing resistance at the 20-day exponential moving average of $95.31. The Relative Strength Index at 47.54 signals weakening bullish momentum, while Iran’s silence on a US-drafted memorandum of understanding adds uncertainty ahead of key US jobs data.
Investors now await April’s Nonfarm Payrolls report at 12:30 GMT, seeking clues on Federal Reserve policy shifts that could influence energy demand.