BY COMFFORT OGBONNA
Oil prices were poised for a weekly decline on Friday after U.S. President Donald Trump extended a temporary pause in attacks on Iran’s energy infrastructure for another ten days. Despite the brief respite, investors remained cautious, with the market watching closely for any escalation that could disrupt global oil supplies.
On Friday morning, benchmark crude prices showed little movement following a bullish session the day before. Brent crude futures edged down by 4 cents, trading at $107.97 per barrel as of 0608 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) futures fell 40 cents to $94.08 per barrel.
This week marked a slight pullback after dramatic gains earlier this year. Since February 28, when the U.S. and Israel launched strikes on Iran, WTI futures had surged 40%, while Brent crude climbed over 48%. Over the past week alone, WTI lost 4.6% of its value, and Brent declined by 4%, signaling that the market was adjusting after rapid price spikes.
“Even with talks of de-escalation, oil is still trading based on the potential duration of the conflict rather than the headlines alone,” said Priyanka Sachdeva, an analyst at Phillip Nova. “Any direct damage to oil facilities or a prolonged war could force prices to spike sharply, with markets repricing rapidly.”
President Trump extended the April 6 deadline for Iran to reopen the Strait of Hormuz, warning that failure to comply could result in the destruction of the country’s key energy infrastructure. At the same time, the United States has deployed thousands of troops to the Middle East, with discussions ongoing about a potential ground operation to secure Iran’s strategic oil hub, Kharg Island.
An Iranian official dismissed a 15-point U.S. proposal, delivered via Pakistan, describing it as “one-sided and unfair.” The ongoing conflict has already removed approximately 11 million barrels of oil per day from the global supply, with the International Energy Agency labeling the crisis as more severe than the combined impact of the 1970s oil shocks and the Russia-Ukraine gas conflict.
Analysts from Macquarie Group highlighted that if hostilities ease in the near term, oil prices are likely to fall back toward pre-conflict levels in the coming months. However, if the war continues through the end of June, crude prices could surge to as high as $200 per barrel.
“With each passing day, pressure on the market increases,” said Mukesh Sahdev, founder and CEO of Australia-based consultancy XAnalysts. “Asian countries are already tapping into buffer stocks and considering adjustments to energy demand to cope with the ongoing uncertainty.”
The oil market remains on edge as traders weigh the possibility of both short-term reprieve and long-term disruption, reflecting a fragile balance between geopolitical developments and global energy demand.
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