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Oil Price Drops After Trump Announces Israel-Iran Peace Deal

Charlie Kirk Staff

06/25/2025

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Oil Price Drops After Trump Announces Israel-Iran Peace Deal

Oil prices plunged Tuesday morning after President Donald Trump secured a ceasefire between Iran and Israel, abruptly ending a conflict that had threatened to spark a wider regional war. The markets cheered the news, with Brent crude prices falling sharply below $70, a move that signals both geopolitical relief and a potential windfall for American consumers.

Brent futures for August delivery dropped three percent to $69.29 a barrel by 7:30 a.m. in New York and mid-morning in London. West Texas Intermediate, the U.S. benchmark, fell a similar 3.07 percent to $66.41 a barrel. These are major moves in a commodity market where such swings usually signal a shift in global outlook, Breitbart News reported.

The sharp decline came as global markets reacted to news that Trump had brokered a ceasefire deal, ending weeks of escalating violence. The president declared the end of what he called the “12 day war.” Oil prices had surged about 10 percent since mid-June amid tit-for-tat strikes between Israel and Iran, including U.S. airstrikes and an Iranian retaliatory attack on an American base in Qatar. The risk premium was building — until Trump stepped in.

With the war now over, traders are quickly reassessing the situation. What had looked like a looming energy crisis is now shaping up as a diplomatic win.

For American families, the peace deal could mean real savings. Lower crude prices typically lead to cheaper gasoline, right as the busy summer travel season kicks into high gear. Trump has long made energy affordability a key priority, seeing oil prices as an important driver for the U.S. economy. With this deal, he may have delivered both global stability and relief for American wallets.

There are still questions about Iran’s next move. Over the weekend, Iran’s parliament reportedly approved the closure of the Strait of Hormuz, a vital chokepoint for much of the region’s oil exports. That decision, however, rests with the country’s national security council, and with tensions now easing, the chances of such an extreme action appear slim.

Wall Street analysts had warned that a closure of the strait could have driven oil prices over $100 a barrel, given the lack of alternative shipping routes.

For now, the war is over. Oil prices are falling. And Americans could soon feel the peace dividend at the pump.

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Charlie Kirk is the Founder and President of Turning Point USA, a national student movement dedicated to empowering young people to promote the principles of free markets and limited government.

Charlie is also the host of “The Charlie Kirk Show” podcast, which regularly ranks among the top-10 news shows on Apple podcast news charts, and is the host of the nationally syndicated daily radio show on the Salem Radio Network live from 12 - 3 PM ET.
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