Oil prices were little changed on Friday but were on track for their second consecutive weekly decline as concerns over a possible U.S.–Iran conflict eased and expectations of an oversupplied market increased, Reuters reported.
Brent crude futures were trading around $67.55 a barrel, up slightly after earlier losses, while U.S. West Texas Intermediate (WTI) stood near $62.85. Despite minor gains in the session, both benchmarks are forecast to end the week lower, with Brent down about 0.8% and WTI down roughly 1.1%.
Oil prices earlier in the week had strengthened on fears that the United States might take military action against Iran over its nuclear program. However, comments from U.S. President Donald Trump suggesting the possibility of a diplomatic deal with Tehran within the next month helped temper geopolitical risk premiums, contributing to a downturn in prices.
Market analysts also pointed to signs that the U.S. is seeking more time for a nuclear agreement with Iran, further reducing the immediate geopolitical risk factor for oil prices.
Beyond geopolitical developments, supply-demand dynamics have weighed on prices. A monthly report by the International Energy Agency (IEA) projected slower global oil demand growth in 2026 and a supply surplus for the year, adding pressure to the market. The build-up of U.S. crude inventories and expectations of increased Venezuelan oil supply have also contributed to bearish sentiment.
Overall, weakening near-term risk premiums associated with Iran and forecasts of surplus global supply have left oil markets on the defensive, with prices set for weekly losses despite late-session stabilization.