Oil Prices Declines After Surge on US-Iran Tensions

Oil prices edged lower in early Asian trade on Thursday after a strong rally the previous day. Brent crude fell 0.2% to $70.23 a barrel. U.S. West Texas Intermediate slipped 0.1% to $65.11 a barrel. Both benchmarks had surged more than 4% on Wednesday amid supply disruption fears.

Investors are closely watching rising tensions between the United States and Iran. However, markets believe a full-scale conflict remains unlikely for now. Analysts say traders have adopted a cautious wait-and-see approach. Concerns about potential supply disruptions continue to influence prices.

The White House said some progress was made in recent Geneva talks with Iran. Still, differences remain, and Tehran is expected to provide further details soon. Meanwhile, Iran issued a notice for planned rocket launches in its southern region. At the same time, the United States has deployed warships near Iran.

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Analysts believe any military action would likely be limited and short-term. They also noted that Washington does not want a sharp rise in oil prices. Meanwhile, satellite images showed new construction at a sensitive Iranian military site. The development has added to regional uncertainty.

In other developments, U.S. crude and fuel inventories reportedly fell last week. This decline surprised markets that expected a rise in stockpiles. Official data from the Energy Information Administration is due later Thursday. Investors are also monitoring global peace talks and corporate earnings for further market direction.