New York, June 24, 2025 — U.S. crude oil futures dropped sharply—over 6%—as global markets reacted to the announcement of a ceasefire between Israel and Iran, backed by former U.S. President Donald Trump .
The oil market saw WTI crude fall to $64.37 a barrel, while Brent crude fell to $67.14, both marking the lowest in nearly two weeks . Prices had previously spiked due to military strikes but came down as the ceasefire eased supply disruption fears.
Why Oil Prices Fell?
- The ceasefire reduced the geopolitical risk premium, especially around the Strait of Hormuz .
- Iran’s limited response—missile strikes on a U.S. base in Qatar—was seen as measured, not escalating into open conflict .
- Trump’s endorsement added confidence that the truce might hold, calming the markets
Market & Economic Reaction
- U.S. stock futures rose alongside oil’s decline, with a shift toward risk-on sentiment in global markets .
- The drop in oil prices also eased inflation concerns, increasing the likelihood of a Federal Reserve rate cut .
- While some analysts caution that the ceasefire is still fragile and may be violated, the current outlook remains positive for energy and financial sectors
