Jammu, April 20 -- Oil prices took a dip this week as tensions in the Middle East eased following statements from Iranian officials about recent incidents. Benchmark Brent crude futures fell nearly 1% to trade around $86 per barrel on Friday after spikes earlier in the week. The developments signify de-escalating hostilities could help stabilize energy markets.

Reports surfaced of explosions in the Iranian city of Isfahan which sources linked to possible Israeli airstrikes. However, Tehran maintained the incidents were overblown and emphasized it did not intend to seek reprisals at this time. With Iran playing down the events, fears of an escalating conflict appear to have receded for now.

Geopolitical risks are a constant factor affect...