Oil falls as US rules out further strikes on Iranian energy infrastructure

Brent crude has pared earlier gains on expectations that the Middle East conflict may see some de-escalation, potentially alleviating supply concerns.

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Oil prices felt some downward pressure after US President Donald Trump said in a social media post that Washington or Tel Aviv would not target Iranian oil and gas infrastructure again.

Subsequently, Israeli Prime Minister Benjamin Netanyahu indicated the same in a press conference – easing some concerns about damage to critical energy infrastructure in the region.

The pullback follows a turbulent period in which Brent’s price surged above $119/bbl, after Israel struck Iran’s South Pars gas field and Iran retaliated with attacks on energy infrastructure across the region.

“ICE Brent eased from its intraday high of $119/bbl yesterday, with it trading back below $108/bbl. This comes after Israel said it would no longer target Iranian energy infrastructure,” two analysts from ING Bank noted.

Meanwhile, US Treasury Secretary Scott Bessent said in an interview with Fox News that Washington could soon lift sanctions on Iranian crude stranded on tankers at sea due to the closure of the Strait of Hormuz.

Netanyahu also indicated that the war in Iran could end sooner than expected – putting more downward pressure on Brent’s price.

Despite the decline, Brent’s price remains well above $100/bbl as the market scrambles to replace disrupted supply.

By Aparupa Mazumder

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