Oil prices pulled back sharply on Friday, reversing part of the previous session\u2019s surge, after Israeli Prime Minister Benjamin Netanyahu suggested the Iran war could end sooner than expected.<\/p>\n
At the time of writing, West Texas Intermediate<\/a> crude was trading at $92.57, down 3.12%, while Brent crude stood at $105.18, down 3.19%.<\/p>\n The latest decline follows a volatile 24-hour period in which oil prices surged<\/a> dramatically on the back of an Israeli attack on the South Pars gas field and an Iranian attack on energy infrastructure across the region. Those escalations briefly pushed Brent beyond $119 per barrel on Thursday, as fears of further serious supply disruptions peaked.<\/p>\n Sentiment in markets then shifted as Netanyahu said that joint U.S.-Israel strikes had significantly degraded Iran\u2019s strategic capabilities and that the war would “end faster than people think.\u201d<\/p>\n Crucially for oil markets, Netanyahu also emphasized that the campaign would not be open-ended and indicated that Israel would refrain from further attacks on Iran\u2019s South Pars gas field at the request<\/a> of President Trump. The move helped ease immediate concerns about further escalation targeting critical energy infrastructure.<\/p>\n Broader financial markets reflected the shift in risk sentiment. South Korean equities rose 0.5% in early Friday trading following Netanyahu\u2019s remarks, while the S&P 500 closed 0.3% lower after recovering from deeper losses earlier in the session.<\/p>\n Adding to the downward pressure, U.S. Treasury Secretary Scott Bessent said<\/a> Washington could authorize another release from the Strategic Petroleum Reserve to help contain oil prices.\u00a0<\/p>\n Despite the pullback, oil prices remain elevated as the market desperately looks to replace disrupted supply. U.S. oil is now being directed<\/a> through the Panama Canal to help deal with the shortfall in Asia, with the U.S. even considering<\/a> lifting sanctions on some Iranian oil to ease the crunch.<\/p>\n By Josh Owens for Oilprice.com<\/p>\n