Global oil prices slide after Trump says US is ‘ending war with Iran’

Global oil prices continued to fall on Friday after United States President Donald Trump called off a planned military strike on Iran, easing fears of a wider conflict in the Middle East.

Brent crude futures dropped $1.21, or 1.3 percent, to $89.17 per barrel by 00:42 GMT.

US West Texas Intermediate crude also fell $1.23, or 1.4 percent, to $86.48 per barrel.

The decline extended losses from the previous trading session, when markets reacted positively to reports that Trump had decided not to proceed with military action against Iran.

Both major oil benchmarks also posted weekly losses with brent crude falling 4.2 percent over the week, while WTI declined 4.4 percent.

Oil prices had surged earlier this month amid fears that escalating tensions between Iran, Israel and the US could threaten supply routes in the Middle East, particularly around the Strait of Hormuz, one of the world’s most important oil shipping lanes.

Analysts said Trump’s decision helped calm immediate concerns about disruptions to global energy supplies, although uncertainty in the region continues to weigh on markets.