International oil prices plummeted!
author: Ann
2025-06-26
The sharp drop in international oil prices is directly related to Israel and Iran agreeing to a comprehensive ceasefire.
According to the latest report from CCTV News, US President Trump posted on his social media platform "Real Social" at 18:00 local time on June 23 that Israel and Iran have agreed to a comprehensive ceasefire. According to Xinhua News Agency, in the evening of the 23rd, Eastern Time, US President Trump announced on the social media "Real Social" that Israel and Iran have reached an agreement on a "comprehensive and thorough ceasefire" and the 12-day conflict is about to end.
The market was originally worried that Iran would block the Strait of Hormuz due to the US air strikes on its nuclear facilities, but Iran turned to attack the US military base in Qatar, avoiding the main oil and gas transportation route, easing the market's panic about the interruption of crude oil supply in the Middle East.
Earlier in the early Asian trading session, Brent rose nearly 6% to more than $80 as the market worried that Iran's retaliatory actions might cut off the Strait of Hormuz, through which about one-fifth of the world's crude oil supply passes. But as the target of the attack was clearly a military base and no US military casualties were caused, market risk expectations quickly cooled.
The Strait of Hormuz connects the Persian Gulf and the Gulf of Oman. Its narrowest point is about 33 kilometers. Iran is located on the north bank of the strait. In 2024, the average daily amount of oil products transported through the strait was about 20 million barrels, accounting for about 20% of the world's daily oil consumption. In 2024, about 20% of the world's liquefied natural gas trade volume was also transported through this strait.
Iran has threatened to block the Strait of Hormuz many times before, but has not taken action. The US media quoted Andy Lipo, a senior international oil market analyst, as saying that if the Strait of Hormuz is completely blocked, crude oil prices may rise to $120 to $130 per barrel.
According to the latest report from CCTV News, US President Trump posted on his social media platform "Real Social" at 18:00 local time on June 23 that Israel and Iran have agreed to a comprehensive ceasefire. According to Xinhua News Agency, in the evening of the 23rd, Eastern Time, US President Trump announced on the social media "Real Social" that Israel and Iran have reached an agreement on a "comprehensive and thorough ceasefire" and the 12-day conflict is about to end.
The market was originally worried that Iran would block the Strait of Hormuz due to the US air strikes on its nuclear facilities, but Iran turned to attack the US military base in Qatar, avoiding the main oil and gas transportation route, easing the market's panic about the interruption of crude oil supply in the Middle East.
Earlier in the early Asian trading session, Brent rose nearly 6% to more than $80 as the market worried that Iran's retaliatory actions might cut off the Strait of Hormuz, through which about one-fifth of the world's crude oil supply passes. But as the target of the attack was clearly a military base and no US military casualties were caused, market risk expectations quickly cooled.
The Strait of Hormuz connects the Persian Gulf and the Gulf of Oman. Its narrowest point is about 33 kilometers. Iran is located on the north bank of the strait. In 2024, the average daily amount of oil products transported through the strait was about 20 million barrels, accounting for about 20% of the world's daily oil consumption. In 2024, about 20% of the world's liquefied natural gas trade volume was also transported through this strait.
Iran has threatened to block the Strait of Hormuz many times before, but has not taken action. The US media quoted Andy Lipo, a senior international oil market analyst, as saying that if the Strait of Hormuz is completely blocked, crude oil prices may rise to $120 to $130 per barrel.
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