Oil Retreats Below $100 as the War-Risk Premium Unwinds
Brent crude fell back below $100 a barrel on Friday, sliding around 4 per cent to roughly $96, as traders unwound part of the war-risk premium that had driven it above $100 on Thursday for the first time in two months. The pullback offered a measure of relief, though oil remained on course for a weekly gain of about 10 per cent as the US–Iran war ground on.
The retreat reflected profit-taking and the absence of any fresh escalation on the ground, rather than a genuine de-escalation: American strikes continued, Houthi attacks on Red Sea shipping persisted, and no ceasefire was in prospect. Analysts cautioned that any move against Gulf energy infrastructure, or a closure of the Strait of Hormuz, could send prices sharply higher again. For British motorists, the brief dip is unlikely to reverse the recent climb at the pumps. Watch the oil price into next week and any sign the fighting spreads to the region’s oilfields.