Brent crude oil prices pared gains from the previous session and fell nearly $2 on Friday after the White House delayed a decision on U.S. involvement in the Israel-Iran conflict, but prices were still poised for a third straight week of gains.

Brent crude was down $1.89, or 2.4%, at $76.96 a barrel by 0255 GMT. For the week, it was up 3.8%.

U.S. West Texas Intermediate crude for July - which did not close on Thursday because of a U.S. holiday and ends on Friday - rose 53 cents, or 0.7%, to $75.67. The more liquid WTI for August was up 0.2%, or 17 cents, to $73.67.

Oil prices jumped nearly 3% on Thursday as Israel bombed nuclear targets in Iran, and Iran fired missiles and drones into Israel after attacking an Israeli hospital overnight. The week-long war between Israel and Iran shows no sign of either side backing down.

Brent futures pared gains from the previous session after White House comments that President Donald Trump would decide whether the U.S. would get involved in the Israel-Iran conflict within the next two weeks.

"Oil prices jumped on concerns about the U.S. escalating in the Israel-Iran conflict. However, the White House press secretary later said there was still time for de-escalation," said Phil Flynn, an analyst at The Price Futures Group.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels of crude per day.

About 18 million to 21 million barrels of oil and oil products per day move through the Strait of Hormuz along Iran's southern coast, and there are widespread concerns that the fighting could disrupt trade flows and hurt supplies.

The "two-week deadline" is a tactic Trump has used in other major decisions. It often ends without any concrete action, which would keep crude prices high and potentially higher based on recent gains," said Tony Sycamore, an analyst at IG. (alg)

Source: Reuters