Crude Oil Plunges 2.3%, Brent 2.5% Overnight as Iran Ceasefire Eases Supply Concerns

According to Jin10, U.S. crude oil fell 2.34% to $70.24 per barrel overnight (June 28), down 8.23% for the week, while Brent crude dropped 2.52% to $73.6 per barrel, declining 8.06% weekly. Progress in U.S.-Iran ceasefire negotiations has restored normal shipping through the Strait of Hormuz, allowing Middle East crude supplies to recover. Saudi Arabia has resumed oil loading operations at Ras Tanura, bringing Persian Gulf exports back to approximately 75% of pre-conflict levels. The recovery in supply has triggered broader market expectations of oversupply, rapidly eroding the risk premiums that had been priced in due to earlier geopolitical tensions.

U.S. stocks fell broadly on Friday, with the S&P 500 declining 0.05% to 7,354.02 and the Nasdaq dropping 0.24% to 25,297.62. Semiconductor stocks led declines, with the Philadelphia Semiconductor Index plunging 5.29%. On Semiconductor crashed 23.66%, marking its largest single-day drop since 2020, while Western Digital and Seagate fell over 13% and 12% respectively.