Crude Oil Prices Rebound in Asia as Markets Eye Iran-Israel Ceasefire Stability

On Wednesday, June 25, 2025, Crude Oil prices rose during Asian trade, rebounding from a steep two-day decline, as markets focused on the fragile U.S.-mediated ceasefire between Israel and Iran and signs of stronger U.S. fuel demand.

Crude Futures Gain on Geopolitical Calm and Demand Signals

By 00:54 GMT, Brent crude futures for August were up 1.2% at $67.93 per barrel, while West Texas Intermediate (WTI) crude gained 1.2% to $63.94 per barrel. At 08:55 AM IST, Brent crude was trading higher 1.49% to $68.14, while WTI crude was hovering higher 1.52% to $65.35.

The uptick followed a sharp slide to near three-week lows on Tuesday, triggered by U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran, which eased immediate concerns over supply disruptions in the oil-rich Middle East.

U.S. Crude Inventories Fall Sharply for Second Week

In addition to geopolitical developments, oil prices found support from a second straight week of larger-than-expected U.S. crude inventory draws.

The American Petroleum Institute (API) reported a 4.3-million-barrel decline in crude stocks last week, significantly above forecasts for a 0.6-million-barrel draw. This follows a massive 10.1 million barrel draw the week before, pointing to tightening inventories.

These figures have bolstered confidence in a seasonal uptick in U.S. fuel consumption, particularly with the summer driving season underway. Traders now await official inventory data from the U.S. Energy Information Administration (EIA), expected later on Wednesday, which could confirm the API's trend.

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Mixed Reports on Iran’s Nuclear Capabilities

Further complicating the geopolitical picture were conflicting reports on the extent of damage caused by U.S. airstrikes on Iran’s nuclear infrastructure.

As per news reports, the strikes only delayed Iran’s nuclear ambitions by months, while U.S. officials maintained that the bunker-buster strikes had “obliterated” three key nuclear sites, most of which were reportedly underground.

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