Oil prices fell on Friday, extending losses from the previous session after US President Donald Trump had cancelled plans to launch strikes on Iran, easing concerns about a further escalation in hostilities following reciprocal attacks earlier this week.
Brent crude futures fell by $1.21, or 1.3 per cent, to $89.17 a barrel. US West Texas Intermediate crude dropped by $1.23, or 1.4 per cent, to $86.48 a barrel. On a weekly basis, Brent crude lost 4.2 per cent, while US crude fell 4.4 per cent.
After previously threatening to bomb Iran “with great force”, Trump cancelled the planned strikes on Thursday, saying that talks with Iran had made progress. However, Iran’s semi-official Fars News Agency reported that Tehran had not approved the text of any agreement, according to Reuters.
Tony Sycamore, a market analyst at IG, said: “While this could, of course, be yet another false dawn, the market’s reaction has been both swift and decisive.”
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