Oil prices retreat despite Middle East tensions after traders sell off geopolitical risk premium amid stalled ceasefire talks.
West Texas Intermediate crude fell 1% to $70.98 on Friday, reversing a morning high of $72.83 as New York selling pressure pushed prices to a session low of $70.70. The decline erases part of the week’s $68.00-to-$72.50 escalation premium tied to renewed Middle East hostilities.
US strikes on Iranian targets, Tehran’s missile attacks, and disrupted tanker traffic through the Strait of Hormuz failed to sustain upward momentum. President Trump declared the ceasefire over, while Iran dismissed reports of upcoming negotiations and buried its former supreme leader, typically a bullish catalyst.
Market reaction remained muted despite supply risks, with traders focusing on the fading geopolitical risk premium rather than fundamentals.