Oil prices tumble and stock futures rise on Iran and Israel cease-fire news
Oil prices are tumbling on news of an Israel-Iran cease-fire agreement.
Oil prices were already falling after Iran launched strikes on a US airbase in Qatar.
Markets saw Iran's strikes as a de-escalatory move as Tehran did not target the Strait of Hormuz.
Oil prices are down sharply while stocks are up on Tuesday after Middle East tensions lessened.
President Donald Trump said Israel and Iran have agreed to a "complete and total" cease-fire and, early Tuesday morning, Israel agreed.
In a statement, Israel said it had "achieved the objectives of the operation." Hours before this, Iran's foreign minister posted on X that there was no cease-fire agreement — but that if Israel stopped attacking Iran, Iran would not engage further.
Benchmark US West Texas Intermediate oil futures were down 3.2% to $66.30 a barrel at 6:10 a.m. ET, while international Brent crude oil futures were 3.4% lower at $69.08 a barrel.
Oil prices have now reversed gains from June 12, a day before Israel struck Iran.
US stock futures were higher at 6.10 a.m. ET:
S&P futures: up 0.87% at 6,129.75
Dow futures: up 0.76% at 43,231.00
Nasdaq futures: up 1.1% at 22,317.00
Oil prices were already falling after Iran's retaliatory strikes on a US airbase in Qatar on Monday, following the American forces' strikes on three Iranian nuclear sites on Sunday.
Though Iran targeted US military assets, markets are relieved that Iran did not target the Strait of Hormuz, a key shipping route for the global oil and gas trade, wrote analysts at Rystad Energy, a research and intelligence firm.
Tehran's strikes on US airbase in Qatar signaled "a possible desire from Iran to de-escalate by inflicting minimal damage to US infrastructure in the region," wrote the analysts.
Qatar said Iranian missiles were intercepted. US officials said there were no reports of casualties.
The energy markets are now focused on developments in the Strait of Hormuz, where a quarter of seaborne oil and a fifth of global liquefied natural gas trade passes. If the Hormuz is affected and closes, the markets may turn again.
"The waterway handles significant volumes for global markets and its importance cannot be understated," added Janiv Shah, a vice president of oil markets analysis at Rystad Energy.
In an earlier Truth Social post, Trump described Iran's retaliatory attack as a "very weak response," and thanked Tehran for giving the US early notice of the strikes.
AJ Bell investment director Russ Mould wrote in a note on Tuesday that markets "will be watching closely to see if the cessation in hostilities is maintained and for Iran's next move."
"There are still outstanding questions, from whether a ceasefire will hold given that mutual strikes had continued overnight, to the future of what remains of Iran's nuclear programme," analysts at Deutsche Bank said in a blog on Tuesday.
"But as things stand, the past 12 days look set to join the long list of geopolitical shocks that proved temporarily disruptive but had little lasting effect on markets," they added.
Read the original article on Business Insider
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