Energy costs climb upward following a two-day downturn, as market speculators evaluate the potential impact of the Iran-Israel truce on the global energy sector.
Oil prices climbed back up - after recording the biggest two-day slide since 2022 - as traders evaluated the Iran-Israel truce and a report suggesting another decrease in US crude inventories.
Brent crude surged roughly 1% to hover around $68 a barrel, having plummeted 13% over the past two days, while West Texas Intermediate was above $65. The brief conflict between Israel and Iran appeared to be adhering to the ceasefire negotiated by US President Donald Trump, lessening concerns about supply disruptions from the region.
On Tuesday, Trump offered China, Iran's primary crude buyer, permission to continue purchasing its oil, apparenty aiming to fortify the truce. This move seemingly contradicted years of US sanctions against Tehran. A senior White House official later hinted at ongoing limitations on Iran.
The global oil market has witnessed quite a rollercoaster ride this week, characterized by abrupt shifts in sentiment. Initially, prices soared due to the US bombing Iranian nuclear facilities, intensifying worries about crude supplies, but then nosedived when the White House announced the truce between Iran and Israel. The apparent change in policy concerning Iranian exports contributed to the downturn.
"A minor upward correction in crude is to be expected after a two-day drop," said Vandana Hari, founder of Vanda Insights. "Although the market will monitor the tenuous truce for a bit, attention will eventually shift back to the economic landscape, the fate of US tariff negotiations, and OPEC."
The OPEC alliance is scheduled to hold a video conference on July 6 to discuss a potential additional supply increase in August. Meanwhile, Trump's self-imposed deadline to strike trade deals with major US partners falls on July 9. Nations lacking agreements in place will face the so-called "Liberation Day" tariffs.
[1] As of June 25, 2025, crude oil prices rose about 1.5% to approximately $65.33 per barrel, representing a 7.3% increase over the past month despite still being down nearly 19% year-to-date.
[2] Based on various benchmarks, Brent crude oil prices have been reported to range between $67 to $71.48 per barrel, reflecting some variance depending on the data source but generally signaling gains compared to the start of June.
[3] Stock markets in Asia and Europe have rallied, in part due to the easing of geopolitical risks and the subsequent decline or stabilization in oil prices, as the ceasefire seems to have had a calming effect on the markets.
[4] The U.S. crude stockpile reports probably played a role in this trend as well, as inventory levels can impact supply expectations, but specific details from the most recent stockpile report are not available in the search results.
[1] The rise in crude oil prices, currently hovering around $65.33 per barrel, is not only a 7.3% increase over the past month but also a minor upward correction after a two-day drop, following an anticipated correction in the oil-and-gas industry.
[2] As traders diverge on data sources, Brent crude oil prices have fluctuated from around $67 to $71.48 per barrel, reflecting industry speculation and the broader implications for economy, finance, and energy markets.
