Oil prices fluctuate amid Iranian-Israeli tensions and anticipation of the US position
Oil prices saw a decline in early trading on Friday, as the escalation between Iran and Israel continued via exchange of attacks, and fears temporarily faded that the United States would intervene in the conflict directly.
Prices rose by 10% and then began to correct
Oil prices jumped by more than 10% last week, after Israel launched raids targeting Iran's nuclear program, raising market fears of a wide regional war that could disrupt oil shipments coming from the Persian Gulf, which supplies the world with about 20% of its oil needs.
But as the escalation between the parties continues through limited air and missile attacks, fears of an All-Out War are beginning to recede, especially after US President Donald Trump refrained from joining the conflict so far, despite internal pressures calling for the use of military force, including the bombing of Iran's underground Fordow nuclear facility.
Trump confirmed that he will announce his final decision in two weeks.
Market volatility and instability
The crude oil market continues to witness sharp fluctuations, with prices fluctuating within a wide range as conflicting news circulates about the developments of the war between Israel and Iran.
Traders remain in a state of suspense, especially with the unclear geopolitical landscape and the prospects of expanding or containing the scope of the confrontation.
At the moment, the market seems to have absorbed the idea of the continuation of the conflict within controlled limits, but any sudden escalation or direct US intervention could send prices back up again.
