Crude oil prices declined on Friday following renewed diplomatic signals around the ongoing Middle East conflict, but the market remained firmly above the $100 per barrel threshold as persistent supply risks continued to underpin global benchmarks.
Brent crude oil, the international benchmark for Nigerian crude oil, slipped to around $107 per barrel after recent gains, while U.S. West Texas Intermediate (WTI) traded near $94 per barrel.
The marginal decline comes after a strong rally driven by escalating geopolitical tensions involving the United States, Israel, and Iran.
Market sentiment improved slightly after reports that the United States delayed further military actions targeting Iranian energy infrastructure, easing immediate fears of deeper supply disruptions.
However, analysts maintain that the broader risk environment remains elevated.
The ongoing conflict has significantly impacted oil supply expectations, particularly around the Strait of Hormuz, a critical global oil transit route responsible for a substantial share of daily crude shipments.
Disruptions in the region have already tightened global supply conditions, contributing to the sharp increase in oil prices recorded over the past month.
Data from market watchers indicate that Brent crude has surged by approximately 48 percent since late February, while WTI has gained about 40 percent over the same period.
The sustained rally reflects growing concerns about prolonged supply constraints and limited spare production capacity among major oil-producing nations.
Despite Friday’s decline, oil prices continue to reflect a strong geopolitical risk premium. The International Energy Agency has warned that the current supply disruption could exceed previous crises in scale, further reinforcing the bullish outlook for crude oil in the near term.
Weekly performance, however, showed some moderation as both major benchmarks recorded losses. Brent crude declined by roughly 4 percent on a weekly basis, while WTI dropped by about 4.6 percent.
Structural changes are also emerging within the global oil market. Asian refiners have increasingly shifted away from Dubai crude pricing to Brent-linked contracts due to heightened price volatility and supply distortions in the Middle East.
Dubai crude previously surged to record levels, reflecting severe supply tightness in the region.
Analysts note that while diplomatic efforts may provide temporary relief, the underlying fundamentals remain supportive of elevated oil prices.
Continued uncertainty around the duration and intensity of the Middle East conflict is expected to drive volatility across energy markets.
Looking ahead, oil traders are expected to closely monitor geopolitical developments, supply flows through key transit routes, and policy responses from major producers. Any escalation could push prices significantly higher, while sustained diplomatic progress may lead to gradual stabilization.