WTI Crude Oil Rebounds Slightly from One-Week Low Amid Israel-Iran Ceasefire and Fed Rate Cut Bets

WTI Crude Oil Dips Near $66.00 as Ceasefire and Fed Cut Bets Impact Market

June 25, 2025 – Energy Market Update
West Texas Intermediate (WTI) crude oil prices reversed part of their steep losses from earlier in the day to hover slightly above $66.00 during Tuesday’s Asian trading session. The market remains under pressure, having dropped from the recent five-month high near $76.75 amid easing geopolitical tensions and growing expectations of a Federal Reserve interest rate cut.

Key Market Drivers:

• Israel-Iran Ceasefire Announcement:
  US President Donald Trump declared a “complete and total” ceasefire between Israel and Iran, calming fears of supply disruptions from the Middle East—a major oil-producing region. Iran’s restrained missile strike on a US base in Qatar rather than oil tankers in the Strait of Hormuz helped soothe markets.
• Fed Rate Cut Speculation:
  Following mixed US PMI data and dovish remarks by Federal Open Market Committee (FOMC) officials, traders ramped up bets on a July interest rate cut. This has led to a weaker US Dollar, which usually supports dollar-denominated commodities like crude oil.

What Traders Watch Next:

Market participants are focused on Fed Chair Jerome Powell’s upcoming testimony before Congress, which could provide fresh insights into the Fed’s monetary policy trajectory and influence oil prices further.

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