WTI crude oil prices pull back to $90.30 per barrel as easing geopolitical tensions in the Middle East temper recent gains.
WTI crude oil prices are retreating to the $90.30 level following a 2.5% rally in the prior session. The decline is driven by a reduction in the geopolitical risk premium, specifically following reports that Donald Trump has signaled no intent for a pre-election strike on Iran, which eases concerns regarding potential supply disruptions in the Middle East.
WTI crude is trading around $90.30 per barrel during Asian hours on Friday.
Prices fell as the market priced out the risk premium associated with potential military strikes on Iran.
West Texas Intermediate crude oil prices retreated to $90.30 per barrel during Friday's Asian trading session. The decline follows a 2.5% rally in the previous session, as markets react to signals that a pre-election strike on Iran is off the table, effectively reducing the geopolitical supply risk premium.
The price decline is attributed to a reduction in the geopolitical risk premium after signals emerged that a pre-election strike on Iran is not expected.