Oil Prices Dip as U.S. Puts Iran Decision on Hold: Markets React to Uncertainty

Oil prices slid on Friday after the White House hit the pause button on a major decision—whether or not the United States will directly step into the escalating conflict between Israel and Iran. Despite the drop, oil is still on track for its third straight week of gains.

Brent crude, the global oil benchmark, dropped by $2 or 2.5%, settling around $76.85 a barrel by early Friday morning (GMT). Even with this dip, it’s set to finish the week over 3% higher.

Meanwhile, U.S. West Texas Intermediate (WTI) crude for July delivery—trading thinly due to the U.S. holiday—dropped just 14 cents to $75. The more actively traded August contract, however, inched up by 19 cents to $73.69.

This all comes after a volatile Thursday, when oil prices spiked nearly 3% on the back of Israel bombing suspected nuclear facilities in Iran, followed by retaliatory missile and drone strikes from Tehran. The week-old flare-up between these two regional powerhouses shows no sign of cooling down.

Tensions have the oil market on edge, particularly since Iran remains one of the largest producers in OPEC, the global oil-producing alliance.

Market jitters eased slightly after a White House spokesperson revealed that President Donald Trump will take up to two weeks to decide whether the U.S. will intervene directly. The delay offered some hope that cooler heads might prevail.

“The delay could be a strategic move,” said Phil Flynn, an analyst at The Price Futures Group. “There’s still a window for diplomacy.”

Tony Sycamore, a market analyst at IG, added, “Trump’s two-week deadlines are often more about political theatre than imminent action. If that’s the case, we might not see drastic oil price spikes just yet.”

Still, uncertainty looms. Emril Jamil, an oil research analyst at LSEG, pointed out that OPEC+—which includes allies like Russia—is showing “unwavering determination” to boost production, which could spook the market further.

For now, oil traders are watching the clock and the headlines, knowing that any sudden shift in geopolitics could send prices soaring once again.