.jpeg "Oil prices fell as US President Donald Trump's indecision on direct involvement in the Iran-Israel conflict eased market tensions.") |
| Global Oil Market Calms as US Delays Direct Involvement |
Global Oil Prices Fall Amid Middle East Tensions as U.S. Delays Military Response
Dhaka, June 21, 2025 —
In a surprising turn, global oil prices declined even as military tensions between Iran and Israel intensified. Market analysts believe this unusual trend stems largely from the United States’ indecision regarding direct involvement in the conflict. President Donald Trump’s announcement that he will "take two weeks to consider" a course of action has provided temporary reassurance to investors and helped stabilize the market.
Mixed Signals in the Oil Market
On Friday, June 20, crude prices reflected both gains and losses across different contracts:
Brent crude dropped to $69.28 per barrel, down by 49 cents or 0.7%.
WTI crude (July) rose 1.1% to $75.96 per barrel.
WTI crude (August) declined by 27 cents or 0.4% to $73.77 per barrel.
Although the weekly trend showed upward movement for the third straight week, daily fluctuations suggest growing market uncertainty.
Previous Surge Fueled by Conflict
Oil prices had risen sharply earlier in the week following Israeli airstrikes on Iranian nuclear and military installations. The escalation had pushed prices up by as much as 13%. Concerns over a possible shutdown of the Strait of Hormuz raised fears that oil could soon exceed $100 per barrel.
U.S. Position Calms Markets—for Now
President Trump’s delay in taking immediate military action is being interpreted by markets as a signal that a wider war may not unfold in the short term. As a result, some of the geopolitical pressure on oil prices has eased.
This hesitation by the U.S. appears to have acted as a stabilizing factor, temporarily halting the upward momentum in crude prices.
Short-Term Relief or Temporary Pause?
While prices have dropped for now, energy experts caution that any sudden escalation—or a change in Washington’s stance—could lead to another sharp spike. The current price dip, they suggest, may not last if conditions worsen in the region.
As of now, the oil market is navigating a fragile calm, closely tied to how the U.S. chooses to proceed in one of the most volatile geopolitical standoffs in recent years.
