Brent crude futures extend losses to 6%, priced at $66.26 per barrel.

Brent crude futures extend losses to 6%, priced at $66.26 per barrel.

Brent crude oil futures extended their losses on Tuesday, falling by 6% to trade at $66.26 per barrel, according to market data. This decline comes amidst geopolitical tensions in the Middle East, particularly the ceasefire agreement between Israel and Iran announced by US President Donald Trump.

The ceasefire, which is set to officially end a 12-day conflict, has alleviated fears of supply disruptions in the region. The announcement followed Iran's missile attacks on a US military base in Qatar, which were intercepted without any reported casualties. The de-escalation has eased concerns that Iran might attempt to block the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil passes.

However, the truce remains fragile. Israel has already accused Iran of violating the ceasefire agreement and warned of new missile fire from Iran. This uncertainty has contributed to the volatility in oil prices, with Brent crude futures trading below levels seen on June 12 when Israel attacked Iran.

The latest developments have also raised concerns about potential disruptions to oil supplies. Goldman Sachs has warned that if the Strait of Hormuz is disrupted, the price of Brent crude could rise over $100 per barrel. This would be the highest level since August 2022 and nearly a third higher than its current level of $77 per barrel.

The UK government has expressed concern about the potential impact of higher oil prices on the UK economy. Chancellor Rachel Reeves has stated that the government is closely following developments in the Middle East and wants to ensure that oil continues to flow through the Strait of Hormuz. Higher oil prices would have implications for the UK economy, including increased energy costs for businesses and families.

The de-escalation in the Middle East has also had an impact on other commodities. The pound has dropped to its lowest level since May 21, losing almost three-quarters of a cent against the dollar. Potential geopolitical dangers, such as Iran’s threats to close the Strait of Hormuz, are providing support for the dollar.

References:

[1] https://www.tradingview.com/news/te_news:464948:0-brent-falls-after-trump-announces-israel-iran-ceasefire/
[2] https://www.tradingview.com/news/te_news:465152:0-brent-crude-below-69/
[3] https://www.theguardian.com/business/live/2025/jun/23/oil-price-imf-iran-strikes-stock-markets-business-live-news-updates?filterKeyEvents=false&page=with%3Ablock-68592e8c8f0808294ac4bde6