Oil Prices Fall 3% as Iran-Israel Ceasefire Ends War Risk

US crude oil futures dropped over 3% on June 24, 2025, when President Trump announced a ceasefire between Israel and Iran. Traders had been adding a "risk premium"—extra cost built into prices for the danger of conflict disrupting the Strait of Hormuz. Once both sides confirmed the deal, that premium vanished instantly, driving prices down.