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Israel-Iran Ceasefire: WTI fell over 5% amid easing tensions and oversupply concerns, with Brent also retreating sharply
Crude Oil Price Today (Representative/News18 Tamil)
Israel-Iran Ceasefire Impact: Crude oil prices continued their downward trajectory after US President Donald Trump announced a tentative ceasefire agreement between Iran and Israel.
In a post on his Truth Social platform, Trump suggested that the ceasefire would take effect in 12 hours, after which the ongoing conflict would be considered “ended.”
Confirming the development, a senior Iranian official stated that Tehran had agreed to the ceasefire with Israel. Meanwhile, Israel’s Channel 12 reported that Prime Minister Benjamin Netanyahu had agreed to the ceasefire during a conversation with Trump, provided Iran halts further attacks.
Following the announcement, oil prices tumbled in early Asian trading. West Texas Intermediate (WTI) crude futures for August dropped as much as 5.1%, falling to \$65.02 per barrel—marking a decline below June 12 levels, the day Israel initiated its strike on Iran.
Brent Crude prices had already fallen 8% overnight after it was revealed that Iran’s retaliatory strikes on U.S. military bases in Qatar were coordinated and caused no human casualties.
Trump officially announced the ceasefire on his Truth Social account, stating that it was “time for peace” and that both parties had agreed to a “complete and total ceasefire.”
Earlier on Monday, Brent crude had spiked to \$81 per barrel after the US bombed Iran’s nuclear sites over the weekend. However, the rally was short-lived as none of the involved nations targeted oil-related infrastructure, and Iran did not follow through on threats to close the vital Strait of Hormuz.
Should the ceasefire hold, analysts believe market attention will shift back to oil fundamentals. Experts have already pointed out that elevated crude prices lack structural support, citing sluggish demand and ongoing concerns about potential oversupply.
Despite recent geopolitical tensions, prices had not surged dramatically, largely because OPEC+ maintained that there is sufficient supply in the global market from other member countries, even if Iranian exports were to be affected.
On Monday, Trump also called on energy producers to reduce prices and urged the U.S. Department of Energy to increase drilling activity.
As of the latest update from Singapore, WTI crude was trading at \$65.54 per barrel.
Oil Market Outlook
Maxwell, Global Strategy Lead at VT Markets, noted, “Oil continues to trade with high volatility and remains unpredictable. While potential production increases by OPEC or rising trade tensions—especially between the US and China—could weigh on prices, the market is likely to see sharp short-term swings. Given the ongoing conflict in the Middle East, headline-driven spikes are expected, making it more prudent to focus on trading short-term volatility.”
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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