Oil prices slid more than 4 per cent on Thursday, falling for the first time in six days, as fears over instability in Iran eased after US President Donald Trump signalled he would hold off attacking Iran.
Brent, the benchmark for two thirds of the world's oil, was trading 4.36 per cent lower at $63.62 a barrel at 10.20pm UAE time on Thursday. West Texas Intermediate, the gauge that tracks US crude, retreated 4.74 per cent to $59.08 per barrel.
The US leader has repeatedly threatened Iran’s leadership over the killing of protesters. “We were told that the killing in Iran is stopping, and there’s no plan for executions,” Mr Trump said from the Oval Office on Wednesday, without disclosing the source for the information. “The killing has stopped. The executions have stopped.”
“I’ve been told that on good authority. We’ll find out about it. I’m sure if it happens, I’ll be very upset,” he added.
Even though concerns around Iran seem to be easing, tensions remain, said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
"Volatility in oil prices will likely stay elevated in the short run given that uncertainties loom around Iran. We could see oil prices spike significantly in case of a US military operation," she told The National.
"However, I expect the geopolitically-led price rallies to remain short-lived and oil prices to remain under pressure on ample global supply in the medium run."
Crude prices fell about 20 per cent in 2025 as geopolitical and economic pressures affected markets. Iranian unrest is “adding upward pressure” to oil prices, alongside attacks near the Caspian Pipeline disrupting Kazakhstan’s exports, compounding delays from harsh winter weather and mooring damage, Ms Ozkardeskaya said on Wednesday. She added that once temporary supply disruptions fade, prices may drift back towards a bearish trend.
Kazakhstan's Foreign Ministry said three tankers were hit en route to the marine terminal of the Caspian Pipeline Consortium in the Black Sea on Tuesday.
Iran is the world’s seventh largest producer of crude. Nationwide protests have rocked the country for weeks, and activists say thousands have been killed amid a government crackdown. Rights groups have put the death toll at more than 2,500 people. On Wednesday, authorities held a mass funeral for security forces personnel killed during the unrest.
Protests have evolved from complaints about Iran's dire economic situation to calls for regime change. Authorities have accused the US and Israel of backing and instigating violence and chaos.
Gold and silver
Precious metals also slipped from their record highs, following Mr Trump’s announcement about holding off on imposing new tariffs on imports of critical minerals.
Silver recovered from its losses earlier in the day and was trading 1.19 per cent higher at $92.57. Gold, platinum and palladium also recovered from earlier losses. Spot gold was down 0.18 per cent at $4,619.62 per ounce. In the previous session, bullion hit a record $4,642.72. US gold futures for February delivery fell 0.9 per cent to $4,594.10.
Spot platinum was last trading 1.58 per cent to $2,423.50 per ounce, after scaling a record peak of $2,478.50 on December 29.
Palladium pared back some of its losses, trading 1.3 per cent lower at $1,877.50 per ounce.
"Encouraging headlines have triggered a pullback in commodities that had seen safe-haven inflows. However, the broader 'debasement trade' – driven by political and geopolitical uncertainty and White House policy moves – is likely to continue, keeping pressure on the US dollar, Treasury yields and potentially US equities," Ms Ozkardeskaya said.
