On June 25, oil prices experienced a slight increase, recovering after experiencing significant declines in the previous two trading sessions. This boost in prices comes as investors closely monitor the stability of a ceasefire between Iran and Israel. Brent crude futures saw an uptick of 75 cents, marking a 1.1% increase to settle at $67.89 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude also rose by 71 cents, or 1.1%, reaching $65.08.
The price of Brent crude had previously hit its lowest point since June 10, while WTI recorded its lowest price since June 5. This decline followed Israel's unexpected military action against key Iranian military and nuclear sites on June 13. Prior to this, prices had surged to five-month highs following U.S. airstrikes targeting Iran’s nuclear capabilities over the weekend. However, according to an initial assessment by U.S. intelligence, these airstrikes did not eliminate Iran's nuclear potential, merely delaying it by a few months.
The fragile ceasefire, which was brokered by U.S. President Donald Trump, appeared to be holding as both Iran and Israel indicated a cessation of hostilities. Earlier on Tuesday, Trump publicly reprimanded both nations for their breaches of the ceasefire, leading to a temporary halt in the air war. After 12 days of conflict, both countries began lifting civilian restrictions, each attempting to assert a narrative of victory.
With direct U.S. involvement in the ongoing conflict, investors expressed concerns regarding the Strait of Hormuz, a critical waterway through which approximately 18 to 19 million barrels per day of crude oil and fuel transit—accounting for nearly one-fifth of global oil consumption. The potential for disruptions in this vital shipping route has heightened market sensitivity and volatility.
As traders awaited the latest data from the U.S. government on domestic crude and fuel stockpiles, early reports indicated a significant decrease in U.S. crude reserves. Market sources, referencing figures from the American Petroleum Institute, noted a decline of 4.23 million barrels for the week ending June 20.
Reporting by Stephanie Kelly; Editing by Christopher Cushing. This article adheres to the Thomson Reuters Trust Principles.
