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EBC Markets Briefing | Oil prices plunge on Trump's U-turn on Iran

Oil prices tumbled on Tuesday to their lowest level in more than a week as Trump said a ceasefire has been agreed between Iran and Israel, relieving worries of supply disruption in the area.

Iran's early notice of attack on a US air base marked its intention to seek a balance between saving face with a military response but without provoking a cycle of escalation it can't afford. Both the oil contracts settled over 7% lower in the previous session after rallying to five-month-highs after the US joined Israel in attacking Iran's nuclear facilities over the weekend. Iran's parliament called for the closure of the Strait of Hormuz, a major artery for the world's oil and gas, according to state-run TV on Sunday. But the move would incense Gulf nations. The European Commission has for the first time signaled flexibility on a major digital rulebook as it seeks relief from Trump's impending trade tariffs. The US has run a service surplus against the bloc. European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the two sides, sources familiar with the negotiations said.

Brent crude easily broke below the psychological support at $70 with few signs of bottoming out. As such it could fall further towards $66.80, a level which is expected to cap the loss. EBC Forex Market Analysis Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Industry In-depth Analysis or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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Publication date:

2025-06-24 09:51:09 (GMT)

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EBC Markets Briefing | ​Oil prices plunge on Trump's U-turn on Iran

EBC Markets Briefing | Oil prices plunge on Trump's U-turn on Iran