Crude futures decline as traders brace for potential Iranian response to Israel while US pushes for swift end to Gaza conflict.
Oil prices slipped in early trading as markets weighed the risk of an Iranian retaliation following recent Middle East tensions. Brent crude and WTI both edged lower, reflecting investor caution ahead of potential escalation in the region.
The decline follows a period of heightened geopolitical uncertainty, with prior sessions showing volatility amid fears of supply disruptions. Analysts note that while Iran has not yet responded, any military action could tighten global oil supplies.
US President Donald Trump indicated optimism for a rapid ceasefire in Gaza, which may ease broader regional risks. However, traders remain on edge as developments unfold.