Oil snaps three-day rally as Iran risk premium eases, dollar firms
Both benchmarks still notched their strongest monthly gains since 2022, with Brent holding above the $70/ barrel threshold for the first time since July
Global crude oil prices edged lower on Friday, 29 January, snapping a three-day rally as traders reassessed geopolitical risk tied to Iran after a subtle shift in US rhetoric dampened near-term supply concerns.
Brent crude futures settled at $70.69/barrel, down 2 cents or 0.03%.
WTI slipped 21 cents, or 0.32%, to $65.21/ barrel.
Both benchmarks still notched their strongest monthly gains since 2022, with Brent holding above the $70/ barrel threshold for the first time since July, underscoring how much geopolitical risk remains embedded in prices.
Market participants pointed to evolving US messaging as a key driver behind Friday’s softening. The focus has shifted from punitive measures over Iran’s deadly crackdown on protesters toward renewed efforts to secure a nuclear agreement. This recalibration siphoned off some risk premium, even as the market stayed alert following President Trump’s earlier decision to deploy additional naval assets to the region, including the recent arrival of an aircraft-carrier strike group in the Middle East.
Adding to the pressure, the US dollar rebounded from four-year lows hit earlier in the week. A firmer dollar typically weighs on oil by raising costs for buyers using other currencies, limiting demand at the margin.
Written by: Rochelle Nguyen