Crude oil prices fell on Friday after U.S. President Donald Trump announced a delay in deciding whether the United States would join Israel’s military operations against Iran. The postponement eased immediate market fears of a broader conflict in the Middle East.
Through White House Press Secretary Karoline Leavitt, President Trump stated he would take two weeks to consider the possibility of diplomatic engagement with Iran before making any decisions on military intervention. “If diplomacy is possible, the president will always pursue it,” Leavitt said, while also emphasizing Trump’s readiness to use force if required.
Read more: Trump to Decide on U.S. Role in Israel-Iran Conflict Within Two Weeks
The statement came amid heightened tensions following a series of deadly exchanges between Israel and Iran. Markets interpreted Trump’s delay as a temporary window for diplomatic solutions, reducing the immediate risk of escalation.
Oil prices responded quickly. Brent crude declined by 2.4% to $76.94 per barrel, while U.S. benchmark West Texas Intermediate (WTI) dropped 1.9% to $73.62 per barrel. Analysts cautioned that despite the drop, markets remain highly volatile.
“This two-week delay isn’t a sign of cooling tensions—it’s a countdown to potential volatility,” said Stephen Innes of SPI Asset Management. “We’re sitting on a geopolitical time bomb.”
While diplomatic efforts offered brief market relief, investor sentiment remained fragile. European foreign ministers were preparing to meet their Iranian counterpart in Geneva to push for de-escalation.
Global stock markets showed mixed performances. Indices in Hong Kong, Shanghai, and Singapore posted gains, while Tokyo’s Nikkei slipped 0.1% amid concerns over rising core inflation. Japan’s surging rice prices have become a key political issue ahead of national elections. Seoul’s Kospi index led the region, climbing above the 3,000-point mark for the first time in over three years.
Adding to market uncertainty were concerns over Trump’s trade policies. With a 90-day tariff truce nearing its end, the future of U.S. trade deals remains unclear.
Key Market Updates (as of June 19, 2025):
- Brent Crude: ↓ 2.4% to $76.94
- WTI Crude: ↓ 1.9% to $73.62
- Nikkei 225 (Tokyo): ↓ 0.1% to 38,445.57
- Hang Seng (Hong Kong): ↑ 0.7% to 23,400.62
- Shanghai Composite: ↑ 0.1% to 3,363.93
- FTSE 100 (London): ↓ 0.6% to 8,791.80
Currency Market Movements:
- Euro/USD: ↑ to $1.1519
- Pound/USD: ↑ to $1.3486
- Dollar/Yen: ↓ to 145.25
- Euro/Pound: ↑ to 85.41 pence
