Oil barrel and oil well on white background with gold coin,Oil prices affect travel and transportation finance businesses.,3d rendering
On June 24, 2025, oil prices saw a significant drop after Israel agreed to a ceasefire proposed by U.S. President Donald Trump to end hostilities with Iran. The agreement eased concerns about potential disruptions in Middle Eastern oil supplies, resulting in the biggest price decline in two weeks.
Israel’s Ceasefire Acceptance Calms Markets
Prime Minister Benjamin Netanyahu confirmed Israel’s acceptance of the ceasefire after achieving its strategic goals concerning Iran’s nuclear and missile programs. According to the ceasefire terms announced by President Trump, Iran would begin the truce immediately, with Israel following after 12 hours. If both parties maintain peace, the conflict could officially conclude within 24 hours.
Market Impact and Expert Opinions
Following the announcement, Brent crude futures dropped by over 5% to around $67.66 per barrel, while U.S. West Texas Intermediate crude fell to $64.76 per barrel. Priyanka Sachdeva, senior analyst at Phillip Nova, told Reuters that if the ceasefire holds, it could pave the way for stability in oil markets, but ongoing compliance will be critical for future pricing.
Tony Sycamore from IG remarked that the risk premium previously reflected in crude prices due to geopolitical tensions has largely faded. The easing of conflict would allow Iran — OPEC’s third-largest oil producer — to resume exports more freely, reducing fears of supply shortages.
Geopolitical Background and Supply Risks
Earlier this month, crude prices surged amid risks that U.S. strikes on Iranian nuclear facilities might worsen into a broader conflict. Such escalation could have disrupted the Strait of Hormuz, a vital maritime chokepoint responsible for nearly 20% of global oil shipments.
Conclusion / Closing Statement
Though the ceasefire declaration reduced short-term anxieties, analysts warn that any renewed conflicts could quickly lead to oil price fluctuations. Investors are on standby, hoping for lasting peace but prepared to act on geopolitical changes.
About the Author
