August WTI futures settled at $75.22 after shedding $7.22 as traders priced out geopolitical risks following a US-Iran agreement.
August WTI crude oil futures fell $7.22, or 8.73%, to settle at $75.22 for the week ending June 19. The decline followed a breakthrough agreement between the US and Iran, prompting traders to unwind geopolitical risk premiums amid expectations of increased Iranian oil supply.
The contract traded between a high of $81.00 and a low of $72.83 during the week. The selloff reflected a shift in focus from supply disruption fears in the Persian Gulf to the potential return of Iranian barrels to global markets.
Market participants reacted swiftly, extending losses throughout the week as the prospect of additional supply overshadowed prior concerns about tight inventories.