Oil prices dip as fears of US attack on Iran ease
Oil prices fell on Friday as markets reassessed the risk of a US attack on Iran, easing after recent sharp gains driven by geopolitical concerns.
Brent crude slipped more than 1% after touching its highest level in months, as traders scaled back risk premiums linked to fears of supply disruptions. Earlier gains had been fueled by concerns that any conflict involving Iran could threaten shipping through the Strait of Hormuz, a critical route for global oil exports, News.Az reports, citing Al Jazeera.
Analysts said prices retreated after an expected escalation failed to materialize overnight, with no immediate signs of military action or disruptions to energy flows.
JPMorgan analysts said that even if military action were to occur, it would likely be limited in scope. “If military action does occur, we expect it to be targeted, avoiding Iran’s oil production and export infrastructure,” analysts led by Natasha Kaneva said in a note.
Earlier, Citigroup also said it expects any US or Israeli action against Iran to remain restrained, lowering the risk of prolonged disruptions to global oil supplies.
By Aysel Mammadzada
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