Oil and gas markets react to Middle East tensions and supply shifts

Oil prices fell sharply after a two-week ceasefire was announced between the US, Israel, and Iran. This pause in hostilities eased immediate fears of a major supply disruption in the Middle East.

At the same time, other market forces are at play. European natural gas prices rose as a deadline set by President Trump for potential action against Iran approached. Meanwhile, global crude oil inventories are growing, and companies and countries are adjusting their supply chains, with Russia sending liquefied natural gas to China and India seeking oil from Venezuela.