WTI crude falls 2.7% to $89.65 amid easing Middle East tensions and lighter trading activity before the weekend.
Oil prices declined in the European session, with WTI crude dropping 2.7% to $89.65 and Brent down 2.6% to $98.05. The pullback follows a period of heightened Middle East tensions, though risk aversion eased as markets entered a lighter trading phase ahead of the weekend.
Euro area business activity rose for the first time in four months, supported by a rebound in services demand. Germany’s July flash manufacturing PMI reached 52.2, exceeding expectations, while UK services PMI climbed to 51.8. Despite the positive data, ECB policymakers signaled caution on future rate moves.
European stocks edged higher, and S&P 500 futures gained 0.2%. The AUD outperformed, while the USD and CHF lagged. Treasury yields dipped 2 bps to 4.68%, and gold rose 0.3% to $4,059.