Crude Market Rebounds From Steep Downturns as Geopolitical Tensions Ease

Oil prices staged a recovery on Friday, climbing back after suffering sharp losses the previous day as anxiety over Iran-U.S. relations subsided. Brent crude futures gained 0.9 percent, settling at $64.33 per barrel, while WTI crude contracts advanced 0.9 percent to $59.73.

The turnaround came following Thursday’s steep selloff, when both benchmarks dropped over 4 percent. That decline had been triggered by signals from U.S. President Donald Trump indicating a softer stance on Iran. Trump’s statements—noting an absence of recent killings and a pause in executions of Iranian protesters—reduced market fears of imminent military escalation that could disrupt global oil supplies.

Diplomatic Signals Mixed

However, the relief proved short-lived. At the United Nations Security Council, U.S. Ambassador Mike Waltz reasserted a more aggressive posture toward Tehran. “President Trump is a man of action, not endless talk,” Waltz stated, emphasizing that all options remain on the table to address the situation. The dual messaging kept traders cautious, as the situation remained fluid and unresolved.

New Threat Emerges in Arctic

Complicating the outlook, tensions surrounding Greenland resurfaced as a market concern. Reports indicated that European military personnel were arriving to bolster defenses against potential U.S. military action toward the autonomous Danish territory. This deployment by NATO allies followed unsuccessful high-level talks between Washington and Copenhagen on Thursday, signaling a hardening of positions rather than diplomatic progress.

The convergence of these geopolitical uncertainties—spanning the Middle East and Arctic regions—continues to create volatility in energy markets, with traders weighing military risks against supply chain stability.