Oil Prices Plunge 7% in a Week to US$89.41
Jakarta, CNBC Indonesia - Global oil prices weakened further on Friday (12/6/2026), extending a sharp correction that has been underway since the start of the week. The easing risk of direct conflict between the United States (US) and Iran caused the previously inflated geopolitical risk premium to evaporate from the market.
According to Refinitiv data as of 09:50 Western Indonesia Time, Brent crude oil stood at US$89.41 per barrel, down 1.07% from the previous close of US$90.38 per barrel. Meanwhile, West Texas Intermediate (WTI) crude oil corrected 1% to US$86.83 per barrel from US$87.71 per barrel.
Today’s weakness extends a fairly deep downward trend throughout the week. Brent has slumped from US$97.81 per barrel on 3 June to the current US$89.41 per barrel, a decline of around 8.6%. Over the same period, WTI fell from US$96.02 to US$86.83 per barrel, a correction of nearly 9.6%.
The heaviest pressure came after US President Donald Trump cancelled plans for a military strike against Iran. Previously, the market had been anticipating the possibility of a wider escalation of conflict following a series of tit-for-tat attacks between the two countries. That threat had pushed oil prices close to US$100 per barrel on fears of supply disruptions from the Middle East.
Reuters reported that Trump decided on Thursday local time to cancel the strike plan and stated that talks with Iran were making progress. The move immediately shifted market sentiment. Market participants who had previously been chasing energy assets to hedge against supply risk began taking profits, causing oil prices to fall sharply.
In fact, the risk in the Middle East region has not completely disappeared. Iran on Wednesday announced the closure of the Strait of Hormuz and warned that passing ships would face the threat of attack. The waterway plays a vital role in global energy trade, as approximately one-fifth of the world’s oil and liquefied natural gas (LNG) supply passes through the area daily.
However, the market appears to be viewing that threat with more caution. The US military stated that commercial ship traffic continues in the Strait of Hormuz. This means that physical disruption to global oil shipments has not yet occurred, even though political tensions remain high.
The price correction also became sharper because oil positions were already at very elevated levels. Brent had touched US$97.81 per barrel in early June, its highest level in several months. As the risk of direct war began to subside, much of the geopolitical premium accumulated over recent weeks was also trimmed.
Nevertheless, IG analyst Tony Sycamore assessed that the market has not completely emerged from the shadow of upside price risk. According to him, as long as oil prices remain in the low US$80 per barrel support area, the potential for renewed strengthening remains open. This is because uncertainty in the Middle East has not truly ended, and the status of the Strait of Hormuz remains a factor that market participants will continue to monitor in the near term.