Oil prices dropped below $70 a barrel following US President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran. Global oil benchmark Brent Crude — which had surged more than 13% after the escalation between the two countries— was trading at $67.89 a barrel, while WTI (West Texas Intermediate) was at $65.05 a barrel as of 8:18 pm IST.
The 12-day-long conflict appeared to come to an end after Trump declared the ceasefire on Truth Social, describing it as “complete and total.” He stated that Iran would begin the ceasefire, followed by Israel twelve hours later, with a formal end to the conflict marked after 24 hours. “During each ceasefire phase, the other side will remain peaceful and respectful,” he added.
However, Iran denied that any agreement had been reached, though it indicated a pause in military operations. “As of now, there is no 'agreement' on any ceasefire or cessation of military operations. However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am. Tehran time, we have no intention to continue our response afterwards,” said Iran’s foreign minister Seyed Abbas Araghchi in a social media post.
The conflict, which broke out on June 13, 2025, had caused oil prices to spike from around $64–65 per barrel to $74–75 per barrel due to fears of supply disruptions in the Middle East—responsible for roughly a third of global oil production.
Although no major oil infrastructure was significantly damaged during the escalation, there were concerns about potential blockages of key maritime choke points—particularly the Strait of Hormuz, which handles about 20% of global crude and 25% of LNG (liquefied natural gas) shipments. The Strait is the main exit route from the Persian Gulf for oil exports from Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, and Iran, and represents a large portion of the world’s spare production capacity.
Amid reports of a possible closure of the Strait of Hormuz, India’s Petroleum Minister Hardeep Singh Puri reassured the public, stating, “India's oil marketing companies have supplies for several weeks and continue to receive energy through multiple routes. The government will take all necessary steps to ensure the stability of fuel supplies for our citizens.”
Despite the ongoing tensions, the minister emphasized the continued availability of sufficient oil in global markets, especially from the Western Hemisphere. “India has diversified its sources of supply. Out of the 5.5 million barrels of crude oil that India consumes daily, about 1.5 to 2 million barrels come through the Strait of Hormuz. We import roughly 4 million barrels via other routes. Our oil marketing companies have enough stock—most have up to three weeks of reserves, and one has 25 days’ worth,” he said.