Israel and Iran paused direct military clashes on June 5, prompting West Texas Intermediate crude oil to drop below $90 a barrel on Tuesday. WTI crude traded around $89.13 a barrel, a more than 5% decline from the $95 level seen shortly after Israel launched retaliatory strikes on Iran. The pause followed U.S. President Donald Trump's call for a cessation of hostilities, with both nations issuing statements halting strikes hours later. The explosive exchanges marked the first direct flashpoint between Israeli and Iranian forces since their April ceasefire, shattering a tense, months-long calm and blindsiding ongoing back-channel negotiations between Washington and Tehran.
WTI Crude Oil Falls Below $90 Following Hostilities Pause
Market data showed that WTI crude traded around $89.13 a barrel on Tuesday, a more than 5% decline from the $95 seen shortly after Israel launched retaliatory strikes on Iran. Brent crude, which spiked to just under $98 a barrel amid Middle East tensions, slid to $93 a barrel, a level last seen on June 5. Energy markets retreated following the pause in the latest Israeli-Iranian hostilities.
Israeli-Iranian Strikes Pause After Trump Ceasefire Call
The explosive exchanges marked the first direct flashpoint between Israeli and Iranian forces since their April ceasefire. Tehran blamed Israel for the flare-up, asserting its strikes were a necessary retaliation for Israeli aggression in Lebanon—actions Iran maintains constitute a flagrant breach of the standing truce. Shortly after both sides exchanged fire, U.S. President Donald Trump called for a cessation of hostilities. Hours later, Iran issued a statement saying it was pausing strikes. Israel said it was ending its campaign but warned of a harsher response if attacked again. Commentators warn of further skirmishes between Israel and Iran because of their different interpretations of the ceasefire terms, noting that the longer negotiations between the U.S. and Iran drag on, the higher the likelihood of hawks on both sides prevailing and returning the two countries to war.
Global Stock Markets Rebound on Truce Announcement
The end of hostilities and a return to the diplomatic track brought relief to global markets, which tanked early Monday. In South Korea, the Kospi index, which plunged to one of its worst single-session lows, jumped by over 600 points, or 8%. The Nikkei 225 was up by 2%. In Europe, the DAX and CAC 40 were marginally higher, while the FTSE 100 was down by 0.36% at the time of writing. Reaction in the cryptocurrency market was mixed, with bitcoin dipping below $63,000, which erased some of its Monday gains. Many high-cap altcoins logged daily gains of 1% to 2%, while privacy coins Zcash and Monero recorded gains exceeding 5%. Several coins saw red, led by LAB, which tumbled 17.6%.
FAQ
What caused WTI crude oil to drop below $90 a barrel on June 5?
WTI crude oil dropped to around $89.13 a barrel following the pause in direct military clashes between Israel and Iran on June 5. The pause came after U.S. President Donald Trump called for a cessation of hostilities, with both nations issuing statements halting strikes hours later.
How did global stock markets react to the Israeli-Iranian ceasefire?
Global stock markets rebounded following the ceasefire announcement. South Korea's Kospi index jumped by over 600 points, or 8%, after plunging to one of its worst single-session lows on Monday. Japan's Nikkei 225 was up by 2%, while European indices DAX and CAC 40 were marginally higher.
