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Oil prices slipped modestly in Asian trading on Friday but pared most of their earlier losses, as persistent concerns over supply disruptions from the ongoing U.S.–Israel war with Iran continued to support the market.
Brent crude futures for May fell 0.1% to $100.34 per barrel by 02:17 ET (06:17 GMT), while West Texas Intermediate (WTI) crude declined 0.4% to $94.05 per barrel.
Earlier in the session, prices had dropped as much as 1% after the United States announced measures to ease supply pressures by allowing purchases of certain Russian oil cargoes. However, the pullback proved short-lived as geopolitical risks remained elevated.
U.S. allows purchases of Russian oil already at sea
Late Thursday, the U.S. Treasury issued a 30-day waiver permitting countries to purchase Russian crude that had already been loaded onto ships before March 12.
Treasury Secretary Scott Bessent said the decision was aimed at stabilizing global energy markets amid supply disruptions tied to the Iran conflict.
Earlier in the week, Washington had already issued limited waivers for Russian oil shipments, including allowing India, the world’s third-largest oil importer, to continue receiving crude from Moscow.
The United States has also indicated it may release additional oil from the Strategic Petroleum Reserve (SPR) to help mitigate supply shocks caused by the conflict.
Emergency reserve releases under discussion
Efforts to stabilize the market have also come from global institutions.
Reports earlier this week suggested the International Energy Agency (IEA) was preparing a record emergency release of more than 400 million barrels from strategic reserves held by member countries to offset disruptions caused by the conflict.
Oil still set for strong weekly gains
Despite Friday’s modest dip, oil remained on track for another week of significant gains.
Both Brent and WTI crude were set to rise between 7% and 9% this week, following a dramatic nearly 30% surge last week as the conflict intensified.
The war entered its fourteenth consecutive day on Friday, with continued airstrikes by the United States and Israel on Iranian targets and retaliatory missile and drone attacks from Tehran.
Iran has also targeted energy infrastructure across parts of the Middle East and has repeatedly threatened to block the Strait of Hormuz, a vital maritime chokepoint through which roughly 20% of global oil consumption normally passes.
Inflation risks remain a key concern
The prospect of prolonged disruptions to oil supplies has heightened concerns in financial markets.
A sustained surge in energy prices could push global inflation higher, potentially forcing central banks to adopt a more hawkish stance on interest rates and delaying potential monetary easing.
As a result, markets remain highly sensitive to developments in the Middle East, with oil prices expected to remain volatile as investors weigh supply risks against efforts to stabilize energy markets.
