Oil loses over 1% on signs of de-escalation between Iran, Israel

Oil drilling rigs

Oil prices fell more than 1% at close on June 16 amid signs that Iran is willing to de-escalate tensions with Israel and resume nuclear talks, easing concerns about global energy supplies.

Brent crude futures for August delivery fell 1.35%, or $1, to settle at $73.23 a barrel. WTI crude futures for July delivery declined 1.66%, or $1.21, to $71.77 a barrel.

This came after an NBC News report indicated that Tehran had asked several international parties to urge the US administration to pressure it to de-escalate the situation in exchange for flexibility on the nuclear issue.

US President Donald Trump confirmed that Iran had sent indirect messages indicating its desire to de-escalate, adding, "They should have started the dialogue sooner, but there is still time."

OPEC kept its forecast for global oil demand growth unchanged at 1.3 million barrels per day in 2025 and 2026, noting that the economic outlook remains strong despite trade concerns.