(Bloomberg) -- Oil eased following a day of choppy trading as investors booked profits and unwound some positions ahead of Israel’s expected retaliation against Iran and the potential rollout of fresh economic stimulus in China.

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West Texas Intermediate settled below $76 a barrel while Brent settled near $79 a barrel. Both benchmarks jumped more than 3% on Thursday. Israel’s government has yet to decide how to retaliate against Iran for a missile attack last week, according to an official familiar with the matter.

While US President Joe Biden has counseled against an attack on energy facilities in the third-largest OPEC producer, the lingering possibility is leaving investors on edge. Tumult in the Middle East has boosted price volatility and prompted hedge funds to bolster net-long positions.

“We are waiting for the event on Israel’s retaliation, with no one really sure what they are going to do,” said Scott Shelton, an energy specialist at TP ICAP Group Plc. “Most of the people I know who trade actively are sidelined and waiting for the retaliation rather than actively getting in front of it.”

Meanwhile, the US is expanding its sanctions on Iran’s oil and petrochemicals sectors in response to the country’s Oct. 1 ballistic-missile attack on Israel, according to a statement from the Treasury Department.

Beijing has scheduled a briefing for this weekend to give more details on a potential stimulus package. Faltering oil consumption and slowing economic growth in the world’s biggest crude importer have weighed on market sentiment this year.

In yet another sign of flailing demand, BP Plc said lower margins from processing crude will hit earnings by $400 million to $600 million, adding to similar projections from Exxon Mobil Corp. and Shell Plc.

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--With assistance from Weilun Soon and Antonia Mufarech.

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