Oil Prices Plunge After Partial Iran-Israel Ceasefire

Oil prices fell sharply, with Brent and West Texas Intermediate crude both dropping over 5% to below pre-conflict levels, after President Trump announced a tentative ceasefire between Israel and Iran. The conflict, which lasted 12 days and included Israeli strikes on Iranian nuclear sites and Iranian missile retaliation, had fueled fears of disruptions to oil shipments through the Strait of Hormuz, though major infrastructure remained unaffected. The ceasefire has not been fully confirmed by both governments, and sporadic missile fire continues, with Iranian officials expressing caution until Israeli strikes cease completely. The de-escalation led to a rally in global equities and a weakening of the US dollar, as markets reassessed the risk of a broader Middle East supply shock. Analysts now expect supply to outpace demand in the second half of 2025, potentially leading to further oil price declines. Attention is shifting back to OPEC+ policy and broader global demand trends, but the situation remains fluid.