Oil Retreats from $100 Peak as Sanctions Ease but Geopolitical Risks Loom

Oil prices slipped back after briefly crossing the symbolic $100 mark, as markets weighed improved supply prospects against mounting geopolitical tensions. West Texas Intermediate (WTI) crude settled near $97 per barrel, reflecting a cautious balance between easing restrictions and persistent risks.


The decline followed a partial easing of U.S. sanctions on Venezuela, allowing limited trade with its state-owned oil company. This move helped calm fears of tight supply, alongside the resumption of crude flows from Iraq’s Kirkuk fields to Turkey. In a bid to further stabilize domestic distribution, Washington also temporarily waived shipping restrictions, enabling foreign vessels to transport fuel between U.S. ports.


Officials signaled that additional steps could be taken to boost supply, including tapping strategic reserves or loosening restrictions on certain Iranian oil volumes. These measures have helped cap price gains, but the market remains far from settled.


Geopolitical tensions continue to cast a long shadow. Strikes on energy infrastructure in the Middle East — including facilities in Iran, Qatar, Saudi Arabia, and the UAE — have raised fears of significant disruptions. The risk of escalation keeps a bullish undertone in play, even as supply-side developments lean bearish.


Major economies have pledged to work together to stabilize energy markets, ensuring secure transit routes and urging an end to attacks on vital infrastructure. Yet, the threat of lasting damage and market fragmentation remains, leaving traders wary of sharp swings.


For now, oil prices hover near critical psychological levels, caught between the promise of improved supply and the peril of geopolitical conflict. The tug-of-war between these forces ensures volatility will remain a defining feature of the energy market in the weeks ahead.