Oil Prices Dip Amid Iran Strike Delay
By Anya Sharma | WASHINGTON, D.C. – 2025/06/20 05:03:30
Oil prices experienced a downturn following hints from President Donald Trump that a decision regarding a potential strike on Iran would be made within two weeks,easing concerns about an imminent American attack. Brent crude oil prices edged down, while “West Texas Intermediate” crude saw slight gains.
Brent crude fell towards $77 a barrel, reducing its third weekly gains.”West Texas Intermediate” crude for August delivery traded near $74.
White House spokeswoman Caroline Levitte informed reporters that the decision would take time due to the “great opportunity to negotiate” with Iran, according to a message dictated by Trump, without specifying a timeframe.
The oil market has been volatile recently, with futures fluctuating by approximately $8. Time gaps expanded, and options contracts reached optimistic levels surpassing those seen after the Russian war on Ukraine.
Fears of an American blow
Brent crude closed about 3% lower on Thursday due to concerns about a possible American strike over the weekend. Senior US officials had begun preparations for a potential attack, though no final decision had been made, according to sources.
“Levitte’s comments have withdrawn some momentum from the market. At least at the present time, prices are expected to remain strongly supported within this very volatile range between $ 70 and 80 dollars per barrel,”
“Levitte’s comments have withdrawn some momentum from the market. at least at the present time, prices are expected to remain strongly supported within this very volatile range between $70 and $80 dollars per barrel,” said Westpac Banking Corp.
Israel has continued attacks on Iranian nuclear sites, but so far, Iran’s oil export infrastructure remains unaffected. Though, there are indications that the “OPEC” member state is accelerating efforts to bring its oil to market, with storage tanks at the island of “exit” filling with crude oil.
The Strait of Hormuz remains a primary concern in the oil market, but there are currently no signs of Tehran attempting to disrupt shipping through this crucial sea lane at the entrance to the Gulf, through which approximately five global crude oil supplies pass.
Prices:
- Brent crude decreased August delivery by 2.1% to $77.21 a barrel at 8:26 am Singapore time.
- The “West Texas Intermediate” crude increased by August delivery by 0.6% to $73.91 a barrel compared to Wednesday’s close. It did not register a settlement price on Thursday due to a holiday in the United States.
- The closest July contract, which ends on Friday, rose to $76.
