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Oil prices dipped slightly on Friday following a five-day winning streak, but remain on track for a weekly gain amid heightened geopolitical tensions between the US and Iran. The benchmark Brent crude traded near $61.50 per barrel, while West Texas Intermediate (WTI) hovered around $56.20. The decline came after positive economic data from China and the US raised concerns about oversupply, but ongoing risks from Middle East tensions and OPEC+ production cuts have kept prices supported. The market remains sensitive to developments in the Strait of Hormuz, a critical oil transit chokepoint. Any escalation in US-Iran clashes could disrupt supply and trigger sharp price swings. Traders are also monitoring OPEC+ compliance with output cuts and potential adjustments in response to slowing global demand. The mixed signals have created a volatile environment for energy investors. For Gulf economies, the price action is crucial as it directly impacts government revenues and fiscal policies. With Saudi Arabia leading OPEC+ production discipline, any policy shift could reverberate across regional markets. Investors should watch for updates on US sanctions against Iran, China-US trade negotiations, and the International Energy Agency’s monthly report for clues about future price direction.
