By Editorial Dept - Jun 12, 2026, 6:00 AM CDT
July WTI crude oil futures traded sharply lower through Thursday as traders removed much of the geopolitical premium tied to tensions between the United States and Iran. Through June 11, the contract traded between a high of $95.47 and a low of $85.13 before settling near $85.93. At that level, prices were down $4.32, or 4.79%, from last week's close.The week's price action was driven largely by changing expectations surrounding President Trump's approach toward Iran. Early concerns that the conflict could escalate and threaten Middle East oil supplies helped support crude prices near weekly highs. Later, signs that diplomacy remained possible encouraged traders to reduce positions built around fears of a major supply disruption.Trump Pulls Back From Military ActionThe biggest shift in sentiment came after Trump said he had canceled planned military strikes against Iran. The decision signaled that the administration was still leaving room for negotiations rather than moving immediately toward broader military action.Before that announcement, traders had priced in the possibility that direct U.S. involvement could increase risks to energy infrastructure and tanker traffic in the region. As fears of an immediate escalation eased, crude prices moved lower as traders removed part of the geopolitical risk premium from the market.Trump also suggested that a peace agreement with Iran remained possible. Those comments reinforced expectations that…
