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Brent oil futures tank 15% from Monday's high, now below pre-Iran–Israel conflict levels; here's why

Brent oil futures tank 15% from Monday's high, now below pre-Iran–Israel conflict levels; here's why

Brent oil for September delivery fell $2.65 a barrel to $68.65 level. It tanked 8.53 per cent in the preceding session, taking its fall from Monday's high of $79.40 a barrel level to 15 per cent.

Amit Mudgill
Amit Mudgill
  • Updated Jun 24, 2025 8:17 AM IST
Brent oil futures tank 15% from Monday's high, now below pre-Iran–Israel conflict levels; here's whyCrude oil prices slipped below June 13 closing price -- the day Iran-Israel conflict started. Brent oil closed at $69.36 level on June 12, and today it hit a low of $67.42 level. 

Crude oil prices tumbled to pre-Iran-Israel conflict levels on Tuesday, with both Brent and WTI futures for September delivery easing 3 per cent on prospects of a Iran-Israel tentative ceasefire, after the US President Donald Trump declared the same via a social media post.  

Brent oil for September delivery fell $2.65 a barrel to $68.65 level. It tanked 8.53 per cent in the preceding session, taking its fall from Monday's high of $79.40 a barrel level to 15 per cent. With this, crude prices slipped below the June 13 closing price -- the day Iran-Israel conflict started. Brent oil closed at $69.36 level on June 12, and today it hit a low of $67.42 level. 

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The US President Donald Trump in a post on Truth Social said it was fully agreed by and between Israel and Iran that there will be a complete and total ceasefire for 12 hours, at which point the war will be considered, ended.

"Officially, Iran will start the ceasefire and, upon the 12th hour, Israel will start the ceasefire and, upon the 24th hour, an official end to the 12 day war will be saluted by the world. During each ceasefire , the other side will remain peaceful and respectful," Trump posted. 

While Iran denied it has reached any agreement, it hinted that it does not plan any new offensive on Israel or the US for now. Its foreign minister, Seyed Abbas Araghchi, in a post on X said: "As of now, there is no "agreement" on any ceasefire or cessation of military operations. However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards." 

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Araghchi said the final decision on the cessation of our military operations will be made later.

On Sunday, Iran’s parliament had voted to close the Strait of Hormuz, a vital global oil transit chokepoint, but the move still required approval from the Supreme National Security Council and the Supreme Leader. With nearly a fifth of the world’s crude oil passing through the strait, any disruption could have triggered a sharp rally in oil prices and significantly impact global energy markets. 

That said, as Kotak Securities noted, such a move would have been self-destructive for Iran, since more than half of the country’s own energy exports transit through the Strait of Hormuz.

"Given the historical context, Iran has threatened close the Strait of Hormuz several times in the past, but has never actually done so which gives a breathing space for oil markets amid a distant possibility of oil prices moving higher towards $120-130/bbl mark. In the overall scheme of things, $60 becomes the base line, $100 becomes the midline and $120-130 becomes the extreme point," said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jun 24, 2025 8:17 AM IST
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