Oil Futures Plummet $4 Amid Fragile Israel-Iran Ceasefire


   
   HOUSTON, TEXAS  (DTN) -- Oil futures continued its downward trend on Tuesday 
after plunging by an average of $4 during the day, following a fragile 
ceasefire between Israel and Iran brokered by U.S. President Donald Trump the 
prior day.

   The front-month NYMEX WTI futures contract fell by $3.97 to $64.54 bbl while 
the ICE Brent futures contract for August delivery dropped by $4.19 to $67.29 
bbl.

   July RBOB gasoline futures slid $0.1294 to $2.0888 gallon, and the 
front-month ULSD futures contract plunged $0.0750 to trade near $2.2881 gallon.

   The U.S. dollar index dropped by 0.410 points to 97.600.

   Oil future prices have now accumulated a $9 loss since the United States 
attacked three Iranian uranium sites on Sunday. President Trump pledged that 
Iranian retaliatory strike on a U.S. base in Qatar did  not warrant a military 
response.

   Trump also announced a ceasefire agreement between Israel and Iran, which 
removed the geopolitical risk-premium that has propelled oil prices to a 
five-month high over the past two weeks. Although Israel confirmed the 
ceasefire on Tuesday, it launched strikes on Teheran in response to an alleged 
violation of the agreement. Analysts had anticipated a limited and largely 
symbolic strike given Israeli Prime Minister Netanyahu's statement on Tuesday 
that Israel had achieved its primary war target.

   In domestic economic news, U.S. consumer confidence fell in June, with the 
index dropping by 5.4 points to 93.0 from 98.4 recorded in May, according to 
the Conference Board report released this morning. The Expectations Index, 
which reflects consumers' short-term outlook for income, business, and labor 
market conditions, dropped by 4.6 points to 69.0, remaining below the threshold 
of 80 that typically signals a recession ahead.  The average 12-month inflation 
expectations eased to 6.0% in June, down from 7% in May.

   Tariffs remained on top of consumers' minds and were frequently associated 
with concerns about their negative impacts on the economy and prices, the 
report said.




(c) Copyright 2025 DTN, LLC. All rights reserved.