Oil Prices Drop Sharply Following President Trump’s Announcement of Iran-Israel Ceasefire

The drop in crude oil prices—more than 7%—was recorded on Monday, even as US stock markets advanced following US President Donald Trump’s announcement of a ceasefire.

Tensions spiked after Iran fired missiles at a major US military base in Qatar, with explosions reported in Doha and projectiles seen overhead. However, Qatari authorities said the situation remained stable, and energy experts noted that oil infrastructure was untouched.

John Kilduff of Again Capital described the Iranian move as “somewhat measured” and noted it avoided civilian areas. He added that this could be Iran’s attempt to de-escalate while saving face, and that a diplomatic solution might now be more likely.

Concerns had centered on the Strait of Hormuz—a critical chokepoint for global oil shipments and a long-standing strategic lever for Iran—but Kilduff said current developments don’t suggest an imminent threat to oil flow through the region.

West Texas Intermediate, the US crude benchmark, fell 7.2% to $68.51 per barrel—below its price before the recent Iran-Israel conflict began.

Patrick O’Hare of Briefing.com interpreted Iran’s action as a sign that it lacks the means or will to escalate significantly, calling the response “relatively weak.”

Though US stocks briefly dipped following the news of the missile strike, markets rebounded quickly. The S&P 500 closed 1% higher.

In Europe, investor sentiment was dampened by new data showing business activity in the eurozone was nearly flat in June. London markets closed lower, weighed down by airline stocks such as EasyJet and British Airways-owner IAG amid concerns over energy prices and potential travel disruptions in the Middle East.

Asian markets were mixed, with Tokyo ending slightly lower, while Hong Kong and Shanghai saw gains.

Meanwhile, the US dollar weakened against the euro and pound after Federal Reserve Governor Michelle Bowman expressed support for cutting interest rates at the next meeting if inflation remains steady. Her stance mirrors recent comments from Fed Governor Christopher Waller, adding to anticipation around Fed Chair Jerome Powell’s upcoming congressional testimony.

Key Market Data (as of 2040 GMT):

• Brent Crude: Down 7.2% to $72.07/barrel

• West Texas Intermediate: Down 7.2% to $68.51/barrel

• Dow Jones (New York): Up 0.9% to 42,581.78

• S&P 500: Up 1.0% to 6,025.17

• Nasdaq Composite: Up 0.9% to 19,630.97

• FTSE 100 (London): Down 0.2% to 8,758.04

• CAC 40 (Paris): Down 0.7% to 7,537.57

• DAX (Frankfurt): Down 0.4% to 23,269.01

• Nikkei 225 (Tokyo): Down 0.1% to 38,354.09

• Hang Seng (Hong Kong): Up 0.7% to 23,689.13

• Shanghai Composite: Up 0.7% to 3,381.58

Currencies:

• Euro/Dollar: Up to $1.1581 from $1.1523

• Pound/Dollar: Up to $1.3526 from $1.3451

• Dollar/Yen: Slightly up to 146.12 yen from 146.09 yen

• Euro/Pound: Down to 85.60 pence from 85.65 pence

Read More: Iranian Foreign Minister Araghchi Rejects Trump’s Claim of Iran-Israel Ceasefire