08:53 AM EDT, 06/20/2025 (MT Newswires) -- Oil prices fell early on Friday with traders lowering the commodity's risk premium as Iran and Israel continue to trade attacks and concerns ease that the United States will enter the fighting.

In its last day as the active contract, West Texas Intermediate crude oil for July delivery was last seen down US$0.27 to US$74.87 per barrel, while August Brent crude was down US$2.76 to US$76.09.

Oil prices are up 10% since Israel last week launched attacks on Iran in an attempt to disrupt that country's nuclear program as the market feared a spreading war could block shipments from the Persian Gulf, which supplies a fifth of the world's oil demand. But despite pressure on President Donald Trump to enter the fray and use U.S. bunker-buster bombs to destroy Iran's underground Fordow nuclear complex, Trump has so far declined to join the fight, saying he will make a decision within two weeks.

Trump indecision comes as Israel and Iran continue to trade air and missile attacks, but worries of a spreading regional war that would cut into oil supplies have, at least for now, abated.

"The crude oil market remains volatile, with prices swinging within a wide range as traders digest a constant flow of news and developments in the Israel-Iran war. Brent touched a fresh five-month high near USD 80 on Thursday before retracing after fears of an imminent US attack eased, thereby allowing diplomacy another chance. A ten-dollar risk premium may evaporate on a solution, while an escalation leading to supply disruption could add ten dollars or more to current prices," Saxo Bank noted.