Crude Oil Drops as Iran Conflict Concerns Send Mixed Signals to Global Markets

Energy prices retreated Friday after a volatile week driven by escalating Middle East tensions. Oil fell back to around $107 per barrel following diplomatic developments between Israeli and U.S. leaders.

HONG KONG — Global markets showed mixed results Friday as energy prices pulled back from recent highs, with crude oil dropping to approximately $107 per barrel amid ongoing concerns about Middle Eastern supply disruptions.

Energy markets experienced significant volatility Thursday when Brent crude, the global benchmark, temporarily spiked to roughly $119 per barrel as Iranian strikes on regional oil and gas infrastructure intensified following Israel’s assault on Iran’s major natural gas facility.

By Friday morning trading, Brent crude had declined 1.6% to $106.90 per barrel after Israeli Prime Minister Benjamin Netanyahu announced he would pause additional strikes on Iranian gas facilities at the urging of U.S. President Donald Trump. U.S. benchmark crude dropped 2% to $93.63 per barrel.

The three-week-old Iranian conflict has driven energy costs higher and sparked concerns about worldwide inflation. Anxiety continues mounting over petroleum and gas availability as the Strait of Hormuz, a vital shipping channel for energy exports situated between Iran and Oman, remains mostly blocked. U.S. Treasury Secretary Scott Bessent suggested Thursday the possibility of removing sanctions on Iranian maritime oil shipments as one strategy to reduce crude prices.

The decline in energy costs helped steady financial markets. Among Asian exchanges, South Korea’s Kospi climbed 0.6% to 5,798.23. Japan’s Nikkei 225 remained closed Friday for a holiday.

Hong Kong’s Hang Seng dropped 0.6% to 25,340.43, while Shanghai’s Composite index advanced 0.2% to 4,013.16.

Australia’s S&P/ASX 200 fell 0.5%, and Taiwan’s Taiex traded 0.2% lower.

Thursday brought moderate declines to Wall Street. The S&P 500 slipped 0.3% to 6,606.49. The Dow Jones Industrial Average decreased 0.4% to 46,021.43, while the Nasdaq composite dropped 0.3% to 22,090.69.

Memory chip manufacturer Micron Technology saw shares fall 3.8% despite posting quarterly earnings that exceeded analyst expectations. The stock has still surged approximately 330% over the past year due to global memory supply shortages.

In early Friday trading, precious metals posted gains. Gold had fallen below $4,700 earlier, partially due to inflation concerns. Friday saw gold prices rise 2.6% to $4,727.20 per ounce. Silver jumped 4.2% to $74.22 an ounce, also recovering from previous losses.

The U.S. dollar strengthened to 158.38 Japanese yen from 157.76 yen. The euro traded at $1.1558, down from $1.1589.