Oil Prices Drop by 7 Percent as Market’s Iran Fear Factor Fades

U.S. stocks also climb following Tehran’s restrained retaliation.

A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, on June 9, 2016. Richard Carson/Reuters

Crude oil prices plummeted by more than 7 percent on June 23 as investors were optimistic that Iran’s limited retaliation could lead to a de-escalation in the Middle East.

West Texas Intermediate (WTI), a U.S. benchmark for oil prices, cratered by about 7.3 percent to below $69 per barrel on the New York Mercantile Exchange. Brent, a global gauge for crude prices, also dipped by nearly 7 percent to below $71 per barrel on London’s ICE Futures exchange.