#News #OilPrices #USIranConflict
In Tokyo, Israel has reportedly agreed to the proposal for a bilateral ceasefire between the United States and Iran, leading to a decrease of more than five percent in fuel prices on Tuesday morning. The tensions between Israel and its fierce rival Iran, following a 12-day conflict, have eased concerns in the energy market.
On Tuesday morning, Brent crude oil dropped by two percent to $67.75 per barrel from $75, while the main American crude oil agreement, WTI, decreased by four percent to $65.10 per barrel. Market participants have welcomed the potential end of the conflict, with the International Monetary Fund’s Lee Hardman stating that Brent has almost fully reversed its gains since the conflict began.
Regarding the recent market shifts, Ramesh Khatri, a representative of Kansai Nepal News, commented, “The potential end of the conflict has been well received by market participants. The recent gains of the U.S. dollar have also led to similar changes in the FX market. If the risk in the Middle East is now perceived as diminishing in terms of market drivers, the possibility of a weaker trend in the U.S. dollar could increase again.”
Iran, in response to the strategic Hormuz Strait blockade, which disrupted oil shipments, has indicated the potential to retaliate against American aggression within a week to safeguard its nuclear facilities. This led to a brief increase in crude oil prices on Monday morning. However, with Iran’s attack on the main American base in Qatar and the unaffected state of oil assets, prices dropped by up to seven percent.
In summary, the agreement for a ceasefire between the U.S. and Iran has positively impacted fuel prices, with market participants expressing optimism for stability in the energy market in the near future.
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Author: MAYA | HARUTO
Posted at: June 25, 2025 3:00 am
