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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move that eases Middle East tensions, reports indicate the U.S. and Iran have agreed to halt hostilities after a weekend of direct military strikes. According to CNBC, the accord allows commercial shipping to pass freely through the Strait of Hormuz—the waterway through which about 20% of global oil supplies transit—removing the immediate threat of a supply disruption.
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Sign InThe agreement followed President Donald Trump's warning of 'annihilation' against Tehran, per reports. It coincided with data showing U.S. crude inventories fell by 6.1 million barrels in the week ending June 24, according to the Energy Information Administration (EIA). The American Petroleum Institute (API) also reported a draw of 765,000 barrels, signaling resilient demand despite the uncertainty.
Investors now focus on the sustainability of this fragile calm. With no clear mediators, the risk of renewed clashes remains. Markets are also watching upcoming economic data, such as the U.S. Services PMI at 51.3 and Composite PMI at 52.2, reflecting modest private-sector expansion that could support oil prices. Any signs of revived tension will reprice the geopolitical risk premium in energy markets.