Brent crude drops 5.8% as Middle East tensions ease
Brent crude oil fell approximately 5.8% to $80.90 per barrel as of 19:43 today, compared to the previous close, amid reduced geopolitical tensions in the Middle East. Brent had risen to $88.95 per barrel yesterday before closing at $85.87. During the same period, West Texas Intermediate (WTI) crude for September delivery traded at $77.97 per barrel.
The decline was driven by a stronger likelihood of a diplomatic resolution between the US and Iran, the resumption of oil production in Libya, and a reduced risk of new attacks on Iran's energy infrastructure. US President Donald Trump stated that talks with Iran are progressing positively and that a deal is highly likely. Although Trump warned that military operations could resume if negotiations fail, ongoing diplomatic contacts have lowered the perception of geopolitical risk in the markets.
According to US media reports, Trump on Friday ordered the US military to halt new strikes against Iran. Iran also announced it has suspended retaliatory attacks, noting that US strikes have ceased for the past two nights. Additionally, Israeli Defense Minister Yisrael Katz said Israel wanted to launch new attacks on Iran's energy infrastructure but the US did not approve these plans due to concerns over a global oil crisis. These developments eased supply fears and supported the downward movement in prices.
News from Libya also limited supply-side concerns. The Milite Oil Complex west of Tripoli resumed operations shortly after security forces intervened following protesters shutting down the facility. With the complex back online, partially halted production at the Elephant and Wafa oil fields has restarted. The normalization of oil supply from Libya reduced concerns about supply disruptions in global markets, exerting downward pressure on prices.
However, the course of US-Iran talks, security developments in the Middle East, and potential new threats to regional energy infrastructure are expected to remain key determinants for the direction of oil markets in the coming period.
This is not investment advice.
Technical indicators for WTI are pointing to weakness, with the RSI approaching oversold territory at 36.8, while the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day (80.97) and 50-day (83.39) moving averages. Headlines indicate that the geopolitical risk premium in the Middle East is diminishing, and the sharp decline in Brent is also impacting WTI. Selling pressure is likely to persist in the short term, though some buying on dips may emerge due to oversold conditions.
Brent crude oil lost 5.8% as Middle East tensions eased. Technical indicators support the decline: the RSI is approaching oversold territory at 35, while the MACD is below the signal line and in negative territory. The price is trading below the 20- and 50-day moving averages, indicating short-term weakness. However, the RSI entering oversold territory could trigger some buying interest. Overall, the downtrend may persist in the near term.
The sharp decline in Brent crude is directly weighing on energy stocks. XOM already exhibits a technically weak outlook, with its RSI approaching the oversold zone at 41, while the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, confirming short-term downward momentum. Easing tensions in the Middle East could sustain the drop in oil prices, potentially driving XOM lower in the coming days.
The sharp decline in Brent crude is exerting direct pressure on CVX shares. Technical indicators also confirm the weakness: the RSI has fallen to 35, approaching oversold territory, while the MACD is below the signal line and in negative territory. The price has slipped below both the 20-day and 50-day moving averages. In the short term, the downtrend is likely to continue, though oversold conditions could trigger some buying on dips.
