Oil Futures Retreat on Hopes for De-escalation in Middle East

Brent crude for September delivery dropped $4.73 to $95.96 per barrel by 11:15 a.m. ET, retreating from the $100 threshold reached on Thursday. West Texas Intermediate followed suit, with its September contract shedding $3.82 to trade at $88.37 per barrel. Despite the cooling, crude benchmarks remain on track to close the week more than $7 higher.

Refined products mirrored the broader sell-off, as ULSD futures fell more than 3% to $4.195 per gallon for August contracts. RBOB gasoline saw similar pressure, with August pricing sinking 11.65 cents to $3.3799 per gallon. The market correction follows Thursday's spike, which was fueled by Houthi militant strikes on Saudi vessels—a development that raised immediate concerns over export stability in the region. Investors are now pivoting toward reports that Pakistan is brokering fresh negotiations to stabilize the conflict, a shift that provided enough optimism to buoy equity markets, with the Dow Jones Industrial Average climbing 0.7%.