On Friday, U.S. crude oil futures dropped by 3% amid reports that Qatar urged Iran to avoid attacking Israel during ongoing cease-fire talks concerning Gaza. Qatar’s prime minister reportedly conveyed to Iranian leaders that de-escalation was crucial to ensure progress in the negotiations, warning against the consequences of any aggressive actions. The message was relayed after the first day of talks in Doha, as reported by The Washington Post, citing two diplomats.
Energy prices also saw declines on Friday. West Texas Intermediate crude for September was down 2.58% at $76.13 per barrel, while Brent crude for September fell 2.36% to $79.15 per barrel. Despite the drop, U.S. crude oil has gained 6.2% year to date, and Brent crude is up 2.7%.
Gasoline and natural gas prices also dipped, with gasoline down 1.81% and natural gas down 1.32%. Gasoline is still up 10.2% year to date, while natural gas has decreased by 13.7%. Cease-fire negotiations were paused on Friday, with talks set to resume next week.
Oil Prices Drop as Qatar Urges Iran to Avoid Israel Attack Amid Gaza Cease-Fire Talks
Earlier in the week, U.S. crude prices had surged over 4% amid rising fears of an imminent Iranian attack on Israel. Iran had threatened retaliation following the assassination of a Hamas leader in Tehran in late July, raising concerns of escalating conflict in the region.
However, prices eased as the feared assault did not occur. The market was also weighed down by concerns over weakening oil demand in China. According to Matt Smith, lead oil analyst for the Americas at Kpler, the market is oscillating between fundamental supply-demand dynamics and geopolitical risks, with Friday’s selloff driven by Middle Eastern negotiations and the continued absence of retaliation by Iran.
