Oil prices drop as investors consider U.S. intervention in Iran-Israel conflict

Oil prices fell on Thursday, June 19, 2025, with investors hesitating to take new positions after United States President Donald Trump gave mixed signals on potential U.S. involvement in the Israel-Iran conflict.

Brent crude futures fell 20 cents, or 0.26%, to $76.5 a barrel by 0421 GMT, after gaining 0.3% in the previous session when high volatility saw prices fall as much as 2.7%.

U.S. West Texas Intermediate crude for July fell 4 cents, or 0.05% to $75.10 a barrel, after settling up 0.4% in the previous when it dropped as much as 2.4%.

The July contract expires on Friday and the more active August contract was down 8 cents, or 0.11%, to $73.42 a barrel.

There is still a “healthy risk premium baked into the price as traders await to see whether the next stage of the Israel-Iran conflict is a U.S. strike or peace talks”, market analyst at IG, Tony Sycamore, told Reuters.

Latest developments in Israel-Iran conflict

Goldman Sachs on Wednesday said a geopolitical risk premium of about $10 a barrel is justified given lower Iranian supply and risk of wider disruption that could push Brent crude above $90.

Trump on Wednesday told reporters that he may or may not decide whether the U.S. will join Israel in its attacks on Iran.

The conflict stretched into its seventh day on Thursday.

Direct U.S. involvement would widen the conflict, putting energy infrastructure in the region at higher risk of attack, analysts said.

The Star