Crude oil prices go below $70 per barrel after ceasefire announcement

Crude oil prices fell steeply after the announcement by US President Donald Trump that Israel and Iran have agreed to a ceasefire. WTI crude for August delivery fell from $75 per barrel yesterday evening to $66.78 per barrel at 9:53 a.m. IST, 24^th June, 2025. Brent crude fell from around $77 per barrel last evening to $69.74 per barrel at this time.

Ceasefire announcement surprised a large section of the oil market

The ceasefire announcement by President Trump immediately after Iran’s attack on a US military base surprised a large section of the market. When the news of Iran’s retaliatory attack on US air base in Qatar came, oil prices jumped further. This on the expectation that the conflict will escalate further. But then the prices plummeted after President Trump announced the ceasefire. President Trump also said that Iran had informed USA beforehand of its attack on the US air base in Qatar.

Iran’s position next to Strait of Hormuz gives it the ability to block it. A third of all seaborne oil of the world moves through Strait of Hormuz. After US bombing of Iran’s nuclear sites on Saturday, Iran’s parliament had approved the blocking of Strait of Hormuz on Sunday.

Iran said it will stop attacking Israel if Israel stops attacking it

After the ceasefire announcement by President Trump, Iran said that it will stop attacking Israel if Israel stops attacks on it. No official confirmation has still come from the Israeli side regarding the ceasefire. President Trump also thanked Iran for informing US beforehand of its missile attacks on US airbase in Qatar.

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Source: CME Group