CVX, XOM, SHEL: Oil Prices Crash 6% as Israel-Iran Ceasefire Takes Hold

Oil prices are down 6% in afternoon trading on June 24 as a ceasefire between Israel and Iran takes hold, and after U.S. President Donald Trump said China can continue buying oil from Iran.

Brent crude oil, the international standard, is down 6.31% and trading at $66.98 per barrel, while West Texas Intermediate (WTI) crude oil, the American benchmark, is down 6.36% to $64.16 a barrel. Energy analysts say prices are falling sharply as traders bet that the conflict in the Middle East is winding down.

“China can now continue to purchase Oil from Iran,” Trump said in a post on his social media platform Truth Social. “Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!” The decline in crude prices has leading oil stocks such as Chevron (CVX), ExxonMobil (XOM), and Shell (SHEL) trending lower as well.

Reversing Course

In May, Trump had threatened to ban any country buying Iranian oil from doing business with the U.S. China purchases the vast majority of the 1.7 million barrels per day that Iran exports, according to market data. Oil prices are at their lowest level since before Israel began striking Iran on June 13.

There is now less risk that a major supply disruption will occur in the Middle East and that business will resume as usual in the energy sector. Trump’s decision to join Israel’s campaign and bomb three key nuclear sites in Iran over the weekend initially triggered fears that Tehran might try to cutoff oil exports from the Persian Gulf in retaliation. Those fears have now subsided, say analysts, sending oil lower.

Is CVX Stock a Buy?

The stock of Chevron has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 10 Buy, six Hold, and two Sell recommendations assigned in the past three months. The average CVX price target of $159.50 implies 6.65% upside from current levels.

Read more analyst ratings on CVX stock