Oil markets have stabilized after a three-day surge, with prices retreating from a 3% gain on Thursday. This shift follows traders reassessing the potential impact of US President Donald Trump’s threats against Iran. The market had initially reacted to the possibility of escalating tensions and their effect on Middle Eastern oil flows. Oil traders are now balancing geopolitical risks against current supply and demand dynamics.

The recent volatility underscores the market's sensitivity to geopolitical events, particularly those involving Iran. As a major oil producer, any disruption in Iran's exports would have a significant impact on global supplies. This is especially true as the market continues to navigate the complex web of international relations and trade policies.

Looking ahead, investors will be closely watching developments in US-Iran relations. Any further escalation or de-escalation could trigger another wave of market movements. Additionally, attention will be on OPEC+ decisions and US oil inventory data, which are also key drivers of price fluctuations.

For traders and investors, the current climate demands vigilance. While geopolitical tensions can drive short-term volatility, fundamentals such as supply and demand trends will ultimately shape long-term market trajectories.