Oil retreats from two-month highs as geopolitical tensions escalate

Oil drilling rigs

Oil declined today, June 12, erasing some of the gains from the previous session when prices reached the highest levels since early April, due to escalating geopolitical tensions in the Middle East.

Brent crude was trading down 0.45% at $69.47 a barrel, at 07:56 am Makkah time. West Texas Intermediate (WTI) crude fell 0.35% to $67.91 a barrel.

Both grades had gained more than 4% on June 11.

Investors are assessing the US administration's decision to relocate some of its employees in the Middle East, emphasizing Washington's categorical rejection of Iran possessing any nuclear weapons, while Tehran insists that its nuclear activities are peaceful.

Concerns have grown about disruptions to oil supplies due to tensions with Iran, especially as the two sides approach a meeting on June 15 in an attempt to reach a new nuclear agreement.