West Texas Intermediate crude oil futures closed at $84.88 per barrel on June 12, marking a drop of $2.83, or 3.23%, in a single session.
The trading range for nearby contracts spanned roughly $83.20 to $87.23 on the day, meaning sellers were firmly in control for most of the session.
What’s driving the decline
Two forces are converging to push crude lower. The first is geopolitical. Tensions surrounding the Strait of Hormuz and US-Iran relations have been the dominant narrative for oil markets throughout 2026. Earlier this year, those tensions pushed crude above the $100 per barrel mark during peak escalation periods.
The April 2026 ceasefire offers a useful reference point. That single event triggered a decline in oil prices exceeding 15%. Thursday’s 3.23% drop, while more modest, fits the same template of geopolitical risk unwinding from the price.
