Oil Holds Near Six-Month High as Investors Track US-Iran Tensions

Oil prices consolidated their recent gains and held near six- month highs on Friday, supported by uncertainty over the future relationship or conflict between the U.S. and Iran.

Brent crude futures were up 6 cents at $70.77 a barrel by 11:27 a.m. CST (1727 GMT). The March contract expires later on Friday.

U.S. West Texas Intermediate crude fell 71 cents, or 1.08%, to $64.71 a barrel.

Oil prices had hit their highest since early August on Thursday after multiple sources said U.S. President Donald Trump was weighing actions against Iran that included targeted strikes, raising concerns about supply disruptions.

Both the U.S. and Iran have since signalled willingness to engage in dialogue, but Tehran on Friday said its defence capabilities should not be included in any talks, stopping the climb by oil prices.

“These gains have paused amid prospects of a chilly ceasefire between Russia and Ukraine and the possibility that an attack on Iran might not occur, as the Trump administration opens the door for talks on Iran’s nuclear program,” said Phil Flynn, senior analyst with Price Futures Group.

Meanwhile, the U.S., which has strengthened its military position in the Middle East in recent weeks, issued new sanctions targeting seven Iranian nationals and at least one entity.

A rise in the dollar from four-year lows hit earlier in the week put some pressure on oil prices. Friday’s dollar strength followed Trump’s announcement that he would pick former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell’s term ends in May.