Oil Loses War Premium, Eyes on Trump, OPEC+ Moves
Oil prices suffered their biggest weekly drop in two years, fueled by a ceasefire between Israel and Iran that eased concerns about supply from the Middle East. Brent was steady near $68 a barrel, down nearly 12% for the week, while WTI was trading just above $65. After an early-week spike from the U.S. bombing of Iranian facilities, prices fell again when President Donald Trump announced the ceasefire, removing almost all of the “war premium” on oil prices.
With geopolitical tensions easing, the market is now turning its attention to developments in trade between the U.S. and China. U.S. Commerce Secretary Howard Lutnick said that a new understanding had been reached, including on rare earth exports from China to the U.S. The deal comes ahead of a July 9 deadline when the U.S. must decide whether to impose additional tariffs on its trading partners.
Investors are also looking ahead to an OPEC+ meeting on July 6 to determine oil production policy for August. On the other hand, Washington is reportedly considering easing sanctions on Iran as an incentive to restart nuclear negotiations, although Tehran denies this. With the geopolitical backdrop calming down, the market's main focus now shifts to global trade dynamics and OPEC's production policy.
Source: (ayu-newsmaker)
