WTI Oil Holds at $65 as Middle East Ceasefire Eases Geopolitical Tensions

WTI Oil Holds at $65 as Middle East Ceasefire Eases Geopolitical Tensions

West Texas Intermediate (WTI) crude oil is trading flat around $65.00 per barrel on Friday, stabilizing after one of its worst weekly performances in years. The price drop—nearly $12 this week—was largely triggered by easing geopolitical risks after President Trump announced a ceasefire between Israel and Iran.

Middle East Truce Calms Supply Shock Fears

The Israel-Iran ceasefire has so far held, reducing market anxiety over potential disruptions in the Strait of Hormuz, a crucial artery for global oil transit. This has brought a sense of calm to the oil markets, halting further price slides—at least temporarily.

Global Economic Concerns Weigh on Demand Outlook

Despite geopolitical stabilization, several macro headwinds continue to weigh on oil:

• US economic data signals a slowdown, with disappointing GDP and spending figures.
• China and the EU have also reported weak economic indicators.
• Ongoing uncertainty in US trade policy, particularly with major partners, clouds the global trade environment.

These concerns are dampening expectations for future oil demand growth, putting pressure on prices despite reduced supply risks.

Outlook:

Oil traders are now shifting their focus to:

• Next week’s OPEC+ meetings for supply guidance.
• Economic data releases from China, the US, and Europe to gauge demand direction.
• Any further developments in US foreign policy and trade negotiations.

Read More: Crude Oil Explained: What Drives Prices in Volatile Times