Oil markets, having climbed on fears of war in the Gulf, are now easing as the world watches whether a blockade will harden into open conflict or settle into a long, grinding stalemate. Brent and West Texas crude both drifted lower this Friday, poised for a second straight weekly decline, as President Trump signaled that Washington would keep its pressure on Iran without seeking a negotiated end. Beneath the calm of the numbers lies an old human pattern: the price of energy rises and falls with the fear of what might be done to the pipes, tankers and ports that carry it. For now, the fear has
Oil Heads for Second Weekly Fall as Trump Hardens Iran Stance and Keeps Military Option Open
No hesitation.
Mark
Prices are falling, yet there are tanker explosions and Houthi attacks in the news. Why aren't they higher?
Mimi
Two things pulled the other way. Traders took Trump's refusal to seek a deal as a sign the blockade will be long and steady rather than an abrupt escalation. And US crude stocks rose by 4.7 million barrels when analysts expected a 1.1-million draw.
Luke
Careful with the tanker story, though. The claim that four tankers were hit comes from Iran's military, and Reuters said it couldn't verify it right away.
Mark
And the Houthi attacks?
Mimi
Also claims, by the Houthis themselves, covering a pumping station on the East-West pipeline, a facility in Yanbu and an Aramco building in Riyadh. Earlier attacks on Saudi infrastructure and tankers did lift prices for two sessions after the November 9 low.
Luke
So the market has shown it reacts to such reports, but we don't have confirmation of damage or of how much supply was actually lost.
Mark
What did Trump actually say?
Mimi
That the US doesn't need a deal to end the conflict, that the blockade on Iranian oil, trade and economic activity stays, and that he'd have "no hesitation" using force. He said action could come immediately if warranted.
Luke
He also said the US has complete control of Hormuz. That's his assertion, and it sits awkwardly beside reports of tankers being hit there.
Mark
Is the weekly drop big?
Mimi
Brent's 2.4 per cent this week follows a 16 per cent plunge the week before, so the second leg is much smaller.
Luke
Right, and prices are still near $95. This is a pullback, not a return to calm.
The Pulse
- Brent sits near $95 and WTI near $88, both sliding toward a second weekly loss after a sharp run of falls that followed earlier highs.
- Trump says America does not need an Iran deal and insists on 'no hesitation' in using force, keeping the blockade of Iranian oil firmly in place.
- Iran claims four tankers were struck in the Strait of Hormuz, while Houthi drones and missiles target Saudi pipelines, refineries and Aramco sites.
- US crude inventories jumped 4.7 million barrels against expectations of a draw, a surprise that adds downward pressure on prices.
- Markets are steadying on the view that the blockade will drag on rather than explode, but any strike in Hormuz could send prices climbing again.
Oil markets, having climbed on fears of war in the Gulf, are now easing as the world watches whether a blockade will harden into open conflict or settle into a long, grinding stalemate. Brent and West Texas crude both drifted lower this Friday, poised for a second straight weekly decline, as President Trump signaled that Washington would keep its pressure on Iran without seeking a negotiated end. Beneath the calm of the numbers lies an old human pattern: the price of energy rises and falls with the fear of what might be done to the pipes, tankers and ports that carry it. For now, the fear has eased a little, but the threats are still in the air.
On Friday morning, Brent crude was trading at $95.41 a barrel, essentially flat, while West Texas Intermediate slipped to $88.52. Both were on course to finish the week lower for a second week running, a retreat that followed a steep fall the week before when Brent plunged 16 per cent.
The slide began when President Trump played down the prospect of renewed strikes on Iran, and Brent touched its lowest level since late August on November 9. But the relief did not last. Attacks on Saudi energy facilities and on oil tankers revived fears of supply disruption, and prices recovered over the next two sessions.
The latest softening came after Trump said Washington does not need a deal with Iran to end the conflict and would keep its blockade on Iranian oil trade in place. Markets took this as a sign of a long standoff rather than a sudden escalation. Yet Trump's tone remained hard, warning of an immediate military response if needed and claiming full control over the Strait of Hormuz.
Shipping risks remain high. Iran's military said four tankers were hit in the Strait, a claim Reuters could not verify, and Houthi forces claimed strikes on Saudi pipeline and Aramco sites. Adding to the downward pressure, US crude stocks rose unexpectedly by 4.7 million barrels, defying forecasts of a decline.
For now, oil's retreat rests on hopes of a slow-moving blockade and a larger-than-expected American stockpile. Whether prices keep falling will depend on what happens around the Strait of Hormuz and Saudi infrastructure in the weeks ahead.
On Friday morning, Brent crude was trading at $95.41 a barrel, essentially unchanged, while US West Texas Intermediate slipped 20 cents, or 0.25 per cent, to $88.52 at 0242 GMT, according to Reuters. Both benchmarks were on course to finish the week lower for a second week running.
The weekly numbers show how far prices have come. Brent was heading for a 2.4 per cent decline this week, after plunging 16 per cent the week before. WTI was set to fall 2.5 per cent, following a 13 per cent loss in the previous week. The slide began earlier this month when President Donald Trump played down the prospect of renewed strikes on Iran. On November 9, Brent settled at its lowest level since late August.
That low did not hold. Over the next two sessions prices recovered, as attacks on Saudi energy infrastructure and on oil tankers revived worries about supply disruptions. The latest softening followed Trump's statement that the United States does not need a deal with Iran to end the conflict. He indicated Washington would keep its blockade on Iranian oil shipments, trade and economic activity in place. Markets read that as a sign of a prolonged blockade rather than an immediate escalation, which eased some fears.
Trump's language remained hard, though. In an interview with Salem News Channel on Thursday, he warned Tehran over alleged threats against American officials, saying those responsible for an attack on US officials "will not exist any longer." Asked whether he would hesitate to use military force to stop Iran from threatening US allies and ships, he answered: "No hesitation." He added that further military action was possible immediately if the situation called for it. He also claimed the US has complete control over the Strait of Hormuz, the key route for oil exports from major Middle Eastern producers.
Shipping risks are still elevated. Iran's military said on Thursday that four oil tankers had been hit by explosions in the Strait of Hormuz after ignoring warnings. Reuters said it could not immediately verify that account. Separately, Yemen's Iran-aligned Houthi group claimed attacks on a pumping station on Saudi Arabia's East-West oil pipeline, on an oil facility in Yanbu, and on an Aramco building in Riyadh.
Supply data added to the downward pressure. The Energy Information Administration reported that US crude inventories rose by 4.7 million barrels to 414.4 million barrels in the week ended November 6. Analysts polled by Reuters had expected a draw of 1.1 million barrels, so the build was a sizeable surprise in the opposite direction.
The retreat from recent highs, then, rests on two things: a belief that the blockade will grind on without a sudden escalation, and a surprisingly large stockpile build at home. Against that stand the threats from Washington and the attacks on tankers and Saudi facilities. Oil's direction in the coming weeks stays tied to what happens around Hormuz and Saudi infrastructure.
Notable Quotes
No hesitation.— President Donald Trump, to Salem News Channel, on using military force against Iran
Those responsible for an attack on US officials will not exist any longer.— President Donald Trump, Salem News Channel interview
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