WTI Crude Oil Falls Toward $65 After Trump Confirms Israel-Iran Ceasefire

WTI Crude Dips Near $65 as Trump Declares Israel-Iran Ceasefire

June 24, 2025 – Asian Trading Session
West Texas Intermediate (WTI) crude oil, the US benchmark, fell to approximately $65.15 on Tuesday morning during the Asian session. The decline follows a major ceasefire announcement by US President Donald Trump, which temporarily eases fears of oil supply disruptions from the Middle East.

Ceasefire Reduces Risk Premium on Oil

Oil prices had previously found support amid escalating tensions, especially after Iran fired missiles at a US airbase in Qatar in retaliation for US strikes on Iranian nuclear sites. However, President Trump's announcement of a “complete and total” ceasefire between Iran and Israel has shifted market sentiment.

“The ceasefire will begin soon and will be complete and total,” Trump stated, according to Reuters.

This announcement eased fears of a wider regional conflict that could impact oil infrastructure and shipping lanes.

Strait of Hormuz Threat Fails to Lift Oil Prices

Despite Iran’s Parliament voting to shut down the Strait of Hormuz, one of the world’s most vital oil transit routes, the market has reacted cautiously. No casualties were reported from the attack, and Iran’s missile strike was intercepted with minimal disruption to operations.

This signals that immediate supply risk remains contained, which is bearish for oil in the short term.

Dovish Fed Adds Additional Pressure

On the monetary front, the Federal Reserve’s dovish tone has also added weight to crude prices. Vice Chair Michelle Bowman noted that interest rate cuts may be on the horizon, reducing the strength of the US Dollar and limiting support for oil prices.

What Traders Are Watching

Key developments ahead:

• Any violation of the ceasefire agreement between Israel and Iran
• Further US-Iran military posturing in the Persian Gulf
• Fed Chair Jerome Powell’s testimony and its implications for rate policy
• US crude inventory data later in the week

Related Articles on Tredu.com:

• How Middle East Conflicts Shape Oil Prices
• What the Strait of Hormuz Closure Would Mean for Energy Markets
• Fed Dovish Turn: Impact on Commodities and Currencies