Oil prices drop as Israel-Iran ceasefire eases tensions ahead of OPEC+ meeting

Reuters
Reuters

Oil prices plunged more than 12% last week, ending a three-week rally, with experts expecting them to stabilize around $60 if the fragile ceasefire between Israel and Iran holds.

Brent crude prices surged to $77.81 per barrel on 23 June after U.S. strikes on Iranian nuclear sites but then fell sharply by 8.5% to $69.48 following Iran’s limited retaliation.

The decline sped up after ceasefire reports between Iran and Israel eased concerns over oil flow through the Strait of Hormuz. Brent closed the week at $66.33, marking its largest weekly drop since March 2023.

Looking ahead, analysts believe prices will hover near $60 as geopolitical risks fade and supply-demand fundamentals reassert themselves.

The OPEC+ meeting on 6 July will be key, as production decisions could push prices down to the mid-$60s if supply is increased.

Experts say U.S. efforts to lower oil prices face challenges from strong summer demand and OPEC+’s supply control. 

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