Oil Price Today, June 12, 2026: Crude Oil Rate Tumbles Below $90 as Easing Iran Tensions Erase Supply Worries

Mumbai, June 12: Oil prices fell sharply on Friday, extending the previous session’s losses after U.S. President Donald Trump shelved plans for military action against Iran, easing fears of a wider Middle East conflict and reducing concerns over potential disruptions to global crude supplies. 

Brent crude futures dropped 1.7% to $88.8 a barrel, slipping below the key $90-per-barrel threshold, while U.S. West Texas Intermediate (WTI) crude declined 1.6% to $86.3 a barrel. The decline marks a significant turnaround from earlier in the week, when escalating tensions between Washington and Tehran had propelled oil prices higher amid fears over supply risks in the Gulf region. 

Peace Prospects Weigh on Crude 

Both benchmarks retreated significantly after attack-cancellation remarks by Trump sparked hopes of peace in the Middle East. Source: oilprice.com

Sentiment in energy markets shifted dramatically after Trump indicated that planned attacks on Iran had been called off following progress in diplomatic engagements. The announcement raised expectations that a broader conflict could be avoided, prompting traders to scale back positions that had been built on geopolitical concerns. 

As fears of supply disruptions eased, investors unwound a large portion of the risk premium embedded in crude prices. Expectations that a potential agreement could help maintain uninterrupted oil flows from the Middle East further added to selling pressure in the market. 

However, traders remain cautious. Reports from Iran suggested that no formal agreement has yet been finalized, underscoring the uncertainty surrounding the negotiations and keeping some geopolitical risk in play. 

Hormuz Remains a Flashpoint 

Despite the recent decline in prices, market participants continue to keep a close watch on the Strait of Hormuz, one of the world’s most important energy transit routes. 

The narrow waterway handles roughly a fifth of global oil and liquefied natural gas shipments, making it highly sensitive to geopolitical developments. Earlier concerns that restrictions on shipping could disrupt supplies had contributed significantly to the rally in crude prices this week. 

While commercial shipping traffic continues to move through the strait, traders remain alert to any signs of renewed tensions that could threaten energy flows and quickly reverse the recent decline in oil prices. 

Positive for India and Global Markets 

The retreat in crude prices is expected to provide relief to major oil-importing economies, including India, by lowering import costs and easing inflationary pressures. 

Lower oil prices are generally supportive for sectors such as aviation, paints, chemicals and consumer goods, while also helping improve macroeconomic indicators such as the current account balance. The decline in energy prices also boosted global risk appetite, contributing to strong gains across Asian equity markets and a sharp rebound on Wall Street. 

Nevertheless, analysts warn that oil markets are likely to remain highly sensitive to geopolitical headlines. Any setback in diplomatic efforts or fresh escalation in the region could quickly revive supply concerns and send crude prices climbing once again. 

Source

• Oil prices from oilprice.com