Crude oil prices are up by about 1% today but are still below the closing price of $71.29 on June 13 when Israel first launched missiles against Iran’s nuclear and military facilities. Earlier this week, the two sides agreed to a ceasefire, which has held steady despite violation accusations from both sides a few hours after President Trump announced the truce.
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Meanwhile, the Strait of Hormuz, which Iran holds major influence over, continues to flow without disruptions. The passageway is a key shipping route for oil and other goods.
Strait of Hormuz Remains Open
A major concern of the Israel-Iran war was that Iran would block or partially block the Strait, resulting in shipping disruptions and higher prices for oil. Experts had argued that Iran would likely leave the Strait open given that a large portion of its government revenues stems from oil exports.
Now, Wall Street expects oil prices to remain in their current range or fall lower as long as the Israel-Iran ceasefire holds and the Strait operates accordingly.
Crude light oil futures have shed 8% year-to-date.
