West Texas Intermediate (WTI) crude oil futures on NYMEX remained flat at approximately $91.00 during the early European trading session on Friday, despite ongoing geopolitical tensions in the Middle East. The oil price consolidated as the US-brokered ceasefire between Israel and Lebanon showed signs of fragility, with continued attacks reported between the two sides [1].
Hezbollah chief Naim Qassem, backed by Iran, publicly rejected the ceasefire deal, labeling it a 'farce' and warning that northern Israel would continue to be targeted as long as Israeli bombings in Lebanon persisted, according to Al Jazeera. Additionally, Iran’s Islamic Revolutionary Guard Corps (IRGC) stated that regional stability would not be achieved unless Israel withdrew from occupied areas in Lebanon [1].
The renewed hostilities between Israel and Lebanon have heightened uncertainty regarding the US-Iran deal, which could perpetuate energy supply concerns and potentially drive oil prices higher. There have been no official comments from Iran about the progress of negotiations with Washington toward a permanent peace agreement. However, US President Donald Trump expressed confidence that a deal would be finalized soon, stating on Truth Social that Washington is 'in the middle of my final negotiations to end the war with IRGC,' while also criticizing members of Congress who supported the war powers resolution [1].
The article notes that political instability, wars, and sanctions are key drivers of WTI oil prices, and that disruptions in the region could impact global energy supply and market sentiment [1].
CONCLUSION
WTI oil prices remained stable near $91 as geopolitical risks in the Middle East persisted, with the Israel-Lebanon ceasefire remaining fragile and uncertainty surrounding US-Iran negotiations. Market participants are closely monitoring developments, as further escalation could impact energy supply and drive price volatility.