Jun 20, 2025 (MarketLine via COMTEX) --
Crude oil prices increased overall during the week due to simmering tensions in the Middle East amid the Israel-Iran conflict. Following IsraelaEUR(TM)s air strikes on Iran, the country launched drone and missiles at diverse targets within Israel. Prices received additional fillip from rumors that the US was evaluating to execute strikes on Iran, supporting IsraelaEUR(TM)s cause of nullifying the nuclear threat. Besides, a weekly drop in the US crude stockpiles also supported the gains in oil prices during the week.
Some key factors that led to changes in crude oil prices this week are as follows:
Oil prices declined on Monday, weighed down by reports that Iran was pushing for a ceasefire following the death of its top military leadership and nuclear scientists in Israeli air strikes. Some media outlets reported that the country was urging other Middle Eastern countries to pressure Israel on terminating the attacks. Nevertheless, the fall in prices was somewhat restrained by the expanding scale of the conflict beyond nuclear and military sites, with both countries striking each other’s energy facilities. Over the weekend, Israel continued to conduct precision strikes on Iranian air defense equipment and other military assets while also striking the South Pars gas field and an oil storage terminal near Tehran. Nevertheless, Iran’s oil and gas export facilities were left untouched, thereby limiting the risks to global supply disruption. Iran also launched multiple waves of ballistic missiles and drone swarms on key targets across Israel, including the crude oil refinery in Haifa. Oil prices gained on Tuesday and then rose slightly on Wednesday, buoyed by the risks associated with the Israel-Iran war on energy supplies from the Persian Gulf. Prices surged due to speculation over the US joining Israel in dismantling Iran’s remaining nuclear installations after President Trump left the Group of Seven (G7) summit in Canada midway and returned to the US. Trump also indicated that he was considering a potential strike on Iran to ensure the country doesn’t build any nuclear warheads. However, he added that there was still a possibility of talks with Iran, thereby leaving the door open to de-escalating the conflict. Prices received additional support from a large weekly fall in the US crude oil inventory. The US Energy Information Administration (EIA) data revealed a 11.5-million-barrel drop in the crude stockpiles for the week ending on June 13, 2025. Oil prices rose slightly on Friday, after the Juneteenth holiday on Thursday, supported by reports that the US was planning to launch airstrikes on Iran in the coming days. This was after Israel continued with its precision strikes on Iranian military and nuclear facilities. Amid these reports, the President Trump gave conflicting statements over the country’s likely entry into this conflict, and pushed for a dialogue with Iran, which kept the upside to oil prices in check. Moreover, the upside to prices was also contained by worries over the prevailing high interest rates in the US. The US Federal Reserve retained the benchmark interest rates during its latest monetary review, stating that the country’s inflation was likely to rise due to the proposed imposition of import tariffs on trading partners.
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COMTEX_466677950/2227/2025-06-26T09:38:18
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