Oil Markets Unwound 3% on Iran-Israel Ceasefire as Conflict Premium Evaporated

US crude oil futures dropped over 3% on June 24, 2025, when President Trump announced a bilateral ceasefire between Israel and Iran, according to Reuters. The speed of the collapse reflected how aggressively traders had priced a Strait of Hormuz risk premium into energy markets during weeks of direct hostilities. Dual confirmation from Jerusalem and Tehran gave the ceasefire unusual credibility, causing an abrupt unwind of that optionality premium.