Oil Prices Set for Weekly >7% Drop
As of 08:19 ET (12:19 GMT) on 19 June 2026, Brent crude futures edged up 0.1% to $79.93 per barrel, while U.S. West Texas Intermediate (WTI) futures rose 1.1% to $77.46 per barrel. Despite these modest intraday gains, both benchmarks are projected to decline by more than 7% for the week, placing them near their lowest levels since early March, shortly after the commencement of the joint U.S.–Israeli assault on Iran.
Analysts at UBS noted in a client note that falling oil prices are likely to ease inflation expectations, reduce pressure on central banks and provide support to risky assets.
Switzerland’s foreign ministry reported that talks between the United States and Iran, scheduled to begin at the Burgenstock resort on Friday, have been postponed. The delay raises questions about the durability of the recently signed preliminary agreement, which had been intended to address Iran’s nuclear programme concerns.
The interim accord, signed earlier, halted hostilities and restored commercial navigation through the Strait of Hormuz – a vital waterway that carries roughly one‑fifth of global oil shipments. The agreement has sparked expectations that millions of barrels of stranded crude could gradually re‑enter international markets over the coming weeks and months. In line with the deal, the United States announced the lifting of its naval blockade on Iranian ports, and ships carrying stranded oil began exiting the waterway on Thursday.
While the prospect of renewed exports has softened the geopolitical risk premium that once pushed oil prices above $120 per barrel at the crisis peak, industry analysts caution that a full recovery in Gulf oil flows will not be immediate.
Broader macro‑economic factors also weigh on the market. A hawkish stance by the U.S. Federal Reserve, including indications that interest rates may remain elevated for an extended period, could dampen economic growth and consequently dent crude‑oil demand.