Oil Prices Decline Below $70 After Israel, Iran Ceasefire
Oil prices plunged sharply during early trading hours on Tuesday, hitting a one-week low after a cease-fire between Israel and Iran eased concerns over supply disruptions in the oil-rich Middle East.
International benchmark Brent crude fell by 2.34%, trading at $67.85 per barrel, down from $69.48 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) declined by about 2.35%, settling at $65.57 per barrel, compared to $67.15 in the prior session.
On Monday, prices fell about 8.5% during the day, after cease-fire reports following Iran’s barrage of missiles aimed at the US military’s Al Udeid Air Base in Qatar, which caused no casualties or major damage.
The market had feared Iran’s retaliation could target regional energy infrastructure, potentially disrupting flows through the Strait of Hormuz, Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, said in a note.
“While the situation can change quickly, this initial response indicates it’s reluctant to drag the US into the conflict,” Hynes said. “It also highlights that the market had already priced in the risk of a significant disruption.”
“Should Iran refrain from escalatory responses, this should keep oil prices elevated but contained,” he added. Earlier on Tuesday, US President Donald Trump announced that a ceasefire between Iran and Israel is now in effect, urging both parties to go along with it.
“The ceasefire is now in effect. Please do not violate it!” Trump said on his social media platform Truth Social.
Rising expectations of a Middle East cease-fire, home to a large portion of the world’s oil reserves, along with reports of no casualties from Iran’s attacks, eased supply concerns and pushed oil prices lower.
However, Iran—OPEC’s third-largest crude producer—opted not to target the Strait of Hormuz, reinforcing expectations that the strategic waterway would remain unaffected.
The strait, which transports about 20 million barrels of oil and petroleum products daily to Asian markets, mainly China, is expected to stay open, contributing to the drop in oil prices.
US President Donald Trump on Monday called for keeping oil prices down as prices surged to near five-month highs following weekend US strikes on Iranian nuclear facilities.
“EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT,” Trump wrote on social media.
The warning came as oil markets reacted to Saturday’s US attacks, ordered by Trump, on Iranian nuclear sites at Fordo, Natanz, and Isfahan, with prices jumping on supply disruption fears. Trump separately called on the US Energy Department to boost domestic production. “DRILL, BABY, DRILL!!! And I mean NOW!!!”
Price increases were driven by concerns that Iran might close the Strait of Hormuz, through which some 20 million barrels of oil and petroleum products transit daily, mostly destined for Asian markets, including China.
Iran’s parliament on Sunday approved a proposal to close the strategic waterway following US strikes, though the final decision rests with Iran’s Supreme National Security Council.
The strait handles 85% of Iraqi oil exports and much of Iran’s petroleum shipments to China. Some tankers have already made U-turns to avoid entering the waterway, though ship traffic continues.
US Vice President JD Vance said disrupting traffic in the strait would be “suicidal” for Tehran. Secretary of State Marco Rubio warned that any move by Tehran to close the strait following the recent strikes would impact the entire world, including the US and China.
#Oil Prices Decline Below $70 After Israel, Iran Ceasefire# Trump Announces Iran-Israel Ceasefire, Iran Cautious
