Expanded its decline the price of oil As US President Donald Trump announced a temporary ceasefire between him Iran and Israel.
Brent oil contracts fell almost 2% – 3% to $ 66 – $ 67 a barrel. Gold declined as demand for shelter declined. In a move that will reduce the arrogance risk premium, Trump said Israel and Iran have agreed to a “total ceasefire”, which will begin at about midnight New York, according to a post on Truth Social.
Separately, Iranian Foreign Minister Abbas Aragki said the country would keep fire if Israeli blows stop, Bloomberg reports.
The oil market has been shaken by the Middle East crisis due to concerns that the conflict could disrupt supplies from the area drawing about one -third of the world. Prices were launched and then gaining their profits as the controversy was evolving, with Israel, Iran and the US avoiding all oil -related infrastructure and ships continuing to pass through the straits of Ormuz with only minor disorders.
In a sign of reducing tensions, Brent’s prompt spread – the difference between the two closest contracts – reduced the barrel to the backwardation to 84 cents. Although this is still an upward pattern, with the closest prices being above the longer -term, it has been reduced by last week’s closure ceiling last week, which was $ 1.77 a barrel.
The crisis broke out earlier this month, as Israel attacked Iran in an attempt to eliminate its nuclear program, decimate its leadership and downgrade its army, with Tehran launching rockets in response. In a significant escalation, Trump then ordered a blow to the Nuclear Planning of the Islamic Republic. Iran’s retaliation in it was a limited missile uniform against an American air base in Qatar.
The temporary ceasefire in the Middle East – if it is valid and lasts – can draw the main attention of traders back to the fundamental sizes of the crude market. There are widespread expectations that oil supply will exceed demand during the second half of this year, pushing world stocks.
The OPEC+ Alliance – in which Iran also participates – reactivates inert production capacity in an effort to regain market share. Further increases in collective supplies are expected in the coming months.
Trump has made it clear that he favors cheaper energy in an effort to support his financial agenda as he continues his aggressive commercial policy. Yesterday (23.6.2025) he demanded that producers push down the crude prices after the US military blows in Iran, while urging the energy ministry to boost drilling.
Speaking to Fox News following Trump’s cease -release announcement, Vice President JD Vance said US bombings have achieved their goals over the weekend. “We know that they cannot build a nuclear weapon,” Vance said. Iran had agreed with the ceasefire, Reuters said, citing an unknown senior official.
The lower oil prices can help to suppress global inflationary pressures, facilitating the challenge faced by central bankers and possibly helping to reduce interest rates. In recent days, US Federal Bank (Fed) Governor Christopher Waller and Vice President Michelle Bowan said they could support a reduction in July if inflation remains restrained.
“In a week and a half, OPEC+ will agree to increase production by another 400,000 barrels a day,” said Robert Rennie, head of the goods and carbon research at Westpac Banking Corp. “As we move on to the third quarter-and world production is increasing and demand is decreasing, driving stocks sharply higher-we will see prices exploring the lower end of the previous price of $ 60-65.”