Oil prices dipped in Asian trading on Thursday after rallying sharply in the previous session as the U.S. authorised voluntary departures for military dependents in the Middle East amid rising tensions with Iran, stoking fears of supply disruptions.
Oil was also supported by the progress in U.S.-China trade talks, with investors closely watching details on the proposed framework deal.
As of 21:26 ET (01:26 GMT), Brent Oil Futures expiring in July slipped 0.4% to $69.47 per barrel, while West Texas Intermediate (WTI) crude futures also fell 0.4% to $67.95 per barrel.
Both contracts surged over 4% on Wednesday during a turbulent trading session, with price swings extending into early Asian hours.
Oil jumped as US-Iran tensions flare ahead of nuclear deadline Wednesday’s spike reflects heightened geopolitical risk following Washington’s move to allow dependents to leave Bahrain and Kuwait amid fears of retaliation.
President Donald Trump said he was now “less confident” in striking a nuclear deal with Iran, further eroding hopes of a diplomatic resolution.
The White House has warned it would consider military measures should negotiations fail, with a key response deadline looming this Thursday.
Meanwhile, Iran’s defence minister threatened that Tehran would target U.S. bases regionally if attacked.
These developments added a geopolitical risk premium to crude, as investors feared any conflict could disrupt shipping routes or oil infrastructure across the Gulf.
