Oil Prices Set for Weekly Loss Despite Heightened U.S.-Iran Tensions

Crude oil prices are poised to post their first weekly loss in three weeks, as broader market pressures outweigh a geopolitical risk premium from simmering tensions in the Middle East and Eastern Europe.

Weekly Performance

Both major oil benchmarks were down on Friday, solidifying a week of losses that broke a two-week rally. According to Reuters data as of 0035 GMT:

• Brent crude futures fell 25 cents, or 0.3%, to $89.45 a barrel.
• West Texas Intermediate (WTI) crude futures declined 22 cents, also 0.3%, to $83.31 a barrel.

For the week, Brent is on track for a significant 5.3% drop, while WTI is set to fall 4.3%.

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Geopolitical Crosscurrents

The weekly decline occurred even as several geopolitical developments provided some underlying support for prices. Oil had settled higher in the previous session after The Wall Street Journal reported that the Trump administration has told mediators it is not interested in reviving previous deal terms with Iran, citing people familiar with the matter.

This report followed an official statement from Washington on Thursday denying any active talks with Iran, complicating diplomatic efforts. The U.S. also imposed what it termed the "toughest sanctions in history" on Tehran earlier in the week. Elsewhere, tensions between Russia and the West escalated after Moscow warned it could strike British military targets, though these combined factors were not enough to reverse the week's downward trend in oil markets.