Oil News: Crude Oil Retreats as War Premium Recedes on Ceasefire
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Key Points:
- Crude oil drops below $100 as markets erase war premium following ceasefire, shifting oil outlook toward near-term downside
- War premium reset drives sharp oil selloff, but prices remain above pre-conflict levels pending supply normalization
- Oil futures slide as traders unwind geopolitical risk, with crude oil outlook tied to Strait of Hormuz reopening progress
Oil Craters Below $100 as Ceasefire Unwinds War Premium
Five weeks of war premium built up in the oil market evaporated in a single session after the U.S. and Iran agreed to a two-week ceasefire. Crude cratered below $100, the entire energy complex sold off hard, and traders who had been long the fear trade headed for the exits all at once. The technical damage is significant, but there are key support levels that could determine whether this is a one-day flush or the beginning of a much bigger move lower. Here is what the charts are saying and what traders should be watching over the next two weeks.