Oil prices retreated in Asian trading Friday after five consecutive days of gains, with Brent crude falling 2% to $79.44 per barrel and WTI crude dropping 1.5% to $84.13. Despite the pullback, both benchmarks remain on track for a weekly surge of over 17% as the conflict between the U.S., Israel, and Iran shows no signs of de-escalation.

Brent oil jumped nearly 5% in the previous session to its highest level since July 2024, while WTI surged over 8%. The conflict has intensified fears over global supply disruptions, particularly through the Strait of Hormuz, which handles roughly 20% of the world's oil supply daily. Traders locked in profits following the steep rally but remain concerned about potential disruptions to energy infrastructure in the region.

U.S. President Donald Trump stated he wants a role in determining Iran's next leader once the conflict ends. While the U.S. announced a 30-day allowance for India to purchase Russian oil to ease supply concerns, analysts say this won't significantly impact prices. ING analysts warn that with each passing day without resumed flows through the Strait of Hormuz, the market will reprice lost supply, potentially pushing prices higher and fueling global inflation pressures.