WTI Crude Drops Below $64.50 as Ceasefire Eases Middle East Supply Risks

WTI Crude Falls Below $64.50 as Israel-Iran Ceasefire Calms Oil Supply Fears

West Texas Intermediate (WTI) crude oil continued its decline on Thursday, dropping to $64.45 during early Asian trading. The price slip follows the announcement of a fragile ceasefire between Israel and Iran, easing fears of a major oil supply disruption in the Middle East.

Ceasefire Eases Geopolitical Tensions in the Oil Market

The recent twelve-day conflict between Israel and Iran raised significant concerns about global oil supply, particularly due to the region’s strategic importance. However, the announcement of a ceasefire—reportedly brokered by U.S. President Donald Trump—has shifted market sentiment.

“President Trump called time on the twelve-day Israel-Iran war after successfully executing an escalate-to-de-escalate strategy,” said Helima Croft, Head of Global Commodity Strategy at RBC Capital Markets.

Investors are cautiously optimistic that this diplomatic resolution could prevent a major supply disruption, particularly through key oil transit routes like the Strait of Hormuz.

US Oil Inventory Drop Overshadowed by Truce

Despite bullish inventory data, the WTI price is trending downward. According to the U.S. Energy Information Administration (EIA), crude oil inventories declined by 5.836 million barrels for the week ending June 20. Normally, this would push prices higher.

However, the easing of geopolitical risk outweighs the inventory drawdown, suggesting that markets are prioritizing long-term supply stability over short-term stock changes.

WTI Price Levels to Watch

Current Price: $64.45
Immediate Support: $64.00
Next Key Support: $63.20
Resistance Levels: $65.30 and $66.75

The technical outlook remains bearish, unless renewed tensions or fresh supply shocks re-enter the picture.

What Traders Should Watch Next

Durability of the Israel-Iran ceasefire
Potential U.S. or OPEC+ policy responses
Updates on Iranian oil exports and Middle East stability
Weekly U.S. crude oil inventory reports

Key Takeaways

WTI crude drops to $64.45 as Israel-Iran ceasefire eases supply risk fears.
The EIA reports a 5.836 million barrel drop in U.S. oil inventories.
Geopolitical stability is now a larger market driver than supply data.
Support lies at $64.00, with markets cautious on Middle East developments.

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