WTI Crude Slips Below $66.50 as Israel-Iran Ceasefire Calms Supply Fears

WTI Crude Slides on Ceasefire Optimism, Fed Rate Cut May Offer Support

West Texas Intermediate (WTI) crude oil continues to lose ground on Tuesday, slipping to around $66.30 during the European session. The decline marks the second straight day of losses as Middle East supply fears fade in light of the announced ceasefire between Israel and Iran.

Geopolitical Easing Reduces Supply Risk

Oil prices weakened as both Israel and Iran officially confirmed a 12-day war truce, with Israeli Prime Minister Benjamin Netanyahu stating that the country's war objectives had been met. Iranian state media echoed the sentiment, boosting hopes of long-term peace and stability in regional oil supply routes.

However, the situation remains delicate. Despite the ceasefire, the Israeli military warned of fresh missile launches from Iran, potentially undermining the truce’s credibility. Still, US President Donald Trump announced that the ceasefire had gone into effect and urged restraint from both sides to prevent further escalation.

Fed Rate Cut Expectations Could Buoy Oil Prices

Even as geopolitical premium fades from oil, there may be upside support coming from monetary policy.
Several Federal Reserve officials, including Michelle Bowman, have hinted at a possible interest rate reduction in July, which would weaken the US Dollar and potentially lift dollar-denominated commodities like crude oil.

Key Technical Levels:

• Support: $66.00 psychological level
• Resistance: $67.80 (previous session high)
• Trend: Bearish bias short-term, stabilizing if Fed dovish tone persists

What to Watch:

• Developments regarding Israel-Iran ceasefire compliance
• US Fed Chair Powell’s testimony for clarity on July rate outlook
• Inventory reports from the EIA and OPEC commentary

Related Tredu Reads:

• US Dollar Dips on Ceasefire and Fed Dovish Hints
• Gold Stays Under Pressure Despite USD Weakness
• NZD/USD Surges Over 0.6000 Amid Risk-On Mood