Oil prices rose Friday, bouncing after a sharp selloff in the previous session as U.S. President Donald Trump played down the risk of military action against Iran, easing supply disruptions fears.
At 04:35 ET (09:35 GMT), Brent Oil Futures expiring in March edged up 0.9% to $64.35 per barrel and West Texas Intermediate (WTI) crude futures gained 1.1% $59.84/barrel.
Both contracts plunged more than 4% in the previous session, but are still on course for weekly gains.
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Oil slumped after Trump tempered stance on Iran
Thursday’s steep decline came after Trump told reporters that Washington was not planning imminent military action against Iran, helping deflate a geopolitical risk premium that had built up rapidly at the start of the week.
Earlier this week, oil prices had surged to multi-month highs as widespread anti-government protests in Iran raised concerns that crude exports from one of OPEC’s largest producers could be disrupted.
Those worries were amplified after Trump issued warnings over the use of lethal force against protesters, interpreted as increasing the likelihood of U.S. military intervention.
"Any escalation with Iran will also raise concerns about potential disruption to oil flows through the Strait of Hormuz, a choke point where around 20m b/d passes," ING analysts said, in a note.
"While risks have eased somewhat, they remain significant, keeping the market nervous in the short term," ING added.
