Muscat: Brent crude futures dropped 29 cents, or 0.4%, settling at $79.11 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) futures slipped by 21 cents, or 0.3%, to $75.64 per barrel. Both benchmarks are set for weekly gains of between 1% and 2%.

The fluctuation comes after Hurricane Milton tore through Florida last Thursday, causing extensive damage, killing at least 10 people, and leaving millions without power. The storm’s aftermath could reduce fuel demand in some regions of the U.S., the world’s largest oil producer and consumer.

Adding to the market’s volatility are fears of a potential escalation in the Middle East. Following Iran’s launch of rockets at Israel on October 1st, concerns have grown that Israel might retaliate by targeting Iranian oil facilities. Despite the tense situation, Israel has yet to respond, and oil prices have remained relatively steady through the week.

Reports from Reuters suggest that Gulf states are urging Washington to dissuade Israel from attacking Iranian oil sites, worried that such actions could provoke retaliatory strikes from Tehran’s allies, potentially threatening oil facilities in the region.

On the supply front, Libya’s National Oil Corporation announced Thursday that production has nearly recovered to pre-crisis levels, with output now reaching 1.22 million barrels per day.