It seems likely that oil prices dropped due to the Iran-Israel truce, with research suggesting a reduction in fears of supply disruptions.
The evidence leans toward Trump cheering the slide, as his announcement of the ceasefire contributed to market confidence.
There’s controversy around the truce’s stability, with initial violations reported, but markets reacted positively overall.
Oil prices have fallen significantly following the Iran-Israel truce announced by Trump. Brent crude dropped to $68.74, and WTI fell to $65.87, reflecting a decrease in geopolitical tensions that had previously raised concerns about oil supply disruptions.
Trump’s announcement of the ceasefire, labeling it the end of a “12-day war,” has been seen as a factor in the oil price drop, with his statements on social media reinforcing market confidence in the truce holding.
The drop in oil prices led to a rally in stock markets worldwide, with indices like the S&P 500 and European markets showing gains, indicating investor relief from reduced Middle East conflict risks.
On June 24, 2025, at 01:27 PM PDT, oil prices have experienced a notable decline following the announcement of a ceasefire between Iran and Israel, brokered by U.S. President Donald Trump. This report, informed by recent news articles and market data, provides a comprehensive overview of the oil price drop, Trump’s involvement, market reactions, and broader implications, catering to investors, policymakers, and market watchers.
The Iran-Israel conflict, escalating over the past two weeks, had raised significant concerns about potential disruptions to oil supplies, particularly through the Strait of Hormuz, a critical chokepoint for global oil and gas flows. On June 23, 2025, Trump announced a ceasefire, labeling it the end of a “12-day war,” which came after Iran attacked a U.S. base in Qatar, retaliating against U.S. bombing of Iranian nuclear sites. This development was widely reported by outlets like Euronews, Reuters, and The New York Times, all published within the last 24 hours, ensuring timeliness and relevance for the current date.
The ceasefire’s announcement was made via Trump’s Truth Social platform, with subsequent statements reinforcing its effect, amid initial violations by both sides, as seen in reports from The Guardian and BBC News. This context is crucial for understanding the oil price dynamics and Trump’s role in cheering the slide.
The oil price drop is directly linked to the reduction in fears of supply disruptions following the ceasefire. According to Euronews: Oil price drops, shares jump as Trump announces Israel-Iran ceasefire, Brent crude, the international standard, dropped 3.83% to $68.74, while WTI dropped 3.85% to $65.87. This decline is significant, especially given that last week, Brent reached over $78 a barrel, a level not seen since the start of the year. The drop is attributed to subsided fears over a blockage to the Strait of Hormuz, through which about 20% of global oil and gas flows, as noted in the same article.
Another source, Reuters: Iran-Israel ceasefire takes hold as Trump applies pressure, also mentions that oil prices plunged, with stock markets rallying worldwide in a sign of confidence inspired by the ceasefire, which allayed fears of disruption to critical oil supplies from the Gulf. This consistency across sources confirms the direct impact of the truce on oil prices.
Oil Type | Price | Percentage Drop | Context |
---|---|---|---|
Brent Crude | $68.74 | 3.83% | International standard, dropped due to reduced fears |
WTI | $65.87 | 3.85% | U.S. benchmark, similar decline observed |
The table above summarizes the oil price changes, highlighting the magnitude of the drop and its alignment with the ceasefire’s effect.
Trump’s role in the ceasefire is central to the narrative. He first announced the truce as “fully agreed” in a post on Truth Social shortly after 22:00 GMT on Monday, June 23, 2025, as seen in Israel-Iran ceasefire: What we know about the deal. He labeled it the end of the “12-day war,” and in subsequent posts, urged both Israel and Iran not to violate it, stating, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!” as reported in Live updates: Trump lashes out at Israel and Iran amid accusations of ceasefire violations.
Trump’s reaction included cheering the slide, with statements like, “I think they both violated it, I’m not sure they did it intentionally. They couldn’t rein people back. I don’t like the fact that Israel went out this morning at all, and I’m going to see if I can stop it,” as seen in the same NBC News article. His involvement, including an angry outburst at both sides for initial violations, as noted in Fragile Israel-Iran truce appears to hold after Trump’s fury at initial violations | Donald Trump | The Guardian, underscores his active role in maintaining the truce, which contributed to market confidence.
The oil price drop had a ripple effect on global markets, with stock markets rallying worldwide. Euronews: Oil price drops, shares jump as Trump announces Israel-Iran ceasefire details the market reactions, including:
European markets opening higher: DAX up 1.99% to 23,730.98, CAC 40 up 1.71% to 7,666.69, FTSE 100 up 0.81% to 8,828.83.
STOXX 600 up 1.48% to 542.93, EURO STOXX 50 up 1.9% to 5,320.97.
U.S. markets: S&P 500 futures up 0.97% to 6,135.75, Dow Jones futures up 0.89% to 43,284.00.
Asian markets: Australia’s S&P/ASX 200 up 0.89% to 8,550.10, South Korea’s Kospi up 2.75% to 3,097.28, Shanghai Composite up 1.07% to 3,417.89, Hang Seng up 2% to 24,162.70, Nikkei 225 up 1.16% to 38,796.39.
Currency markets also reacted, with the U.S. Dollar Index slipping by 0.32% to 98.10, the Euro gaining 0.25% against the dollar, and the Yen dropping 0.48% against the dollar, as noted in the Euronews article. Economists suggested that persistent threats to oil would increase the U.S. dollar value and hurt currencies like the Euro, with Greg Hirt from Allianz Global Investors noting structural issues and Trump’s tariff handling would weigh on an overvalued U.S. dollar.
Market Index | Change | Closing Value | Region |
---|---|---|---|
DAX | +1.99% | 23,730.98 | Europe |
CAC 40 | +1.71% | 7,666.69 | Europe |
FTSE 100 | +0.81% | 8,828.83 | Europe |
STOXX 600 | +1.48% | 542.93 | Europe |
EURO STOXX 50 | +1.9% | 5,320.97 | Europe |
S&P 500 Futures | +0.97% | 6,135.75 | U.S. |
Dow Jones Futures | +0.89% | 43,284.00 | U.S. |
S&P/ASX 200 | +0.89% | 8,550.10 | Australia |
Kospi | +2.75% | 3,097.28 | South Korea |
Shanghai Composite | +1.07% | 3,417.89 | China |
Hang Seng | +2% | 24,162.70 | Hong Kong |
Nikkei 225 | +1.16% | 38,796.39 | Japan |
The table above summarizes the global market reactions, highlighting the widespread positive response to the ceasefire and oil price drop.
The truce’s stability is a point of controversy, with initial violations reported. Israel claimed Iran launched missiles post-ceasefire, while Iran denied this, and both sides accused each other of violations, as seen in Israel and Iran continue to exchange fire despite Trump’s ceasefire declaration | Israel | The Guardian. Trump’s reaction, including his strong rebuke of Israel for dropping bombs post-agreement, as noted in Fragile Israel-Iran truce appears to hold after Trump’s fury at initial violations | Donald Trump | The Guardian, reflects the fragility, but markets seem to have focused on the overall reduction in conflict risk.
For investors, the oil price drop suggests potential benefits for energy consumers and related sectors, but vigilance on the truce’s stability is crucial. The rally in stock markets indicates a positive short-term outlook, though geopolitical risks remain. Policymakers may see this as a temporary relief, with long-term implications for U.S. foreign policy and energy security.
This analysis, informed by multiple reliable sources, provides a detailed snapshot of the oil price drop due to the Iran-Israel truce and Trump’s cheering, offering insights for stakeholders monitoring global markets on June 24, 2025.
Oil price drops, shares jump as Trump announces Israel-Iran ceasefire | Euronews
Iran-Israel ceasefire takes hold as Trump applies pressure | Reuters
Live Updates: Cease-Fire Takes Hold After Trump Rebukes Israel and Iran | The New York Times
Israel-Iran ceasefire: What we know about the deal | BBC News
Israel-Iran ceasefire appears to hold after Trump outburst at both sides - live updates | BBC News
Iran, Trump announce ceasefire is in effect; Israel yet to confirm | NBC News