Global oil prices have fallen back below $70/B following US President Donald Trump’s 24 June announcement that a ceasefire agreement had been reached between Israel and Iran. The 12-day conflict had caused oil prices to increase by around $10/B, but they swiftly dropped back to pre-conflict levels of around $68/B upon the announcement (MEES, 27 June).
With both sides avoiding targeting Gulf oil infrastructure, oil flows from the region remained unaffected by the conflict, capping the impact on prices. Brent crude settled at a high of $78.85/B on 19 June and briefly topped $80/B in intra-day trading following the US entry into the conflict on 22 June, but even this was below levels reached as recently as January. (CONTINUED - 895 WORDS)
