Oil prices in the United States showed signs of rising even though a ceasefire between Iran and Israel continued. The Iran-Israel ceasefire eased concerns about supply disruptions in the Middle East. However, rising fuel demand in the U.S. supported higher oil prices as summer travel increased.
Brent crude climbed by 34 cents to reach $68.07 per barrel. Similarly, U.S. West Texas Intermediate crude increased by 33 cents to settle at $65.57 per barrel. These small gains came after oil futures dropped to their lowest level in over a week.
The recent drop followed a major announcement. U.S. President Donald Trump confirmed a ceasefire agreement between Iran and Israel. That announcement reassured global markets and reduced tension over supply chains in the region.
However, by Thursday, oil prices began to climb again. This shift came after U.S. government data showed lower crude inventories. At the same time, refinery activity rose, along with consumer demand. This fresh data led investors to rethink earlier expectations.
Analyst Phil Flynn explained that markets now recognize how tight crude oil supplies have become. His comments highlighted a quick change in market sentiment.
In addition, the dollar index fell to its lowest point in three years. This occurred after news surfaced that President Trump might soon name the next head of the Federal Reserve. That news sparked talk of possible interest rate cuts in the United States.
A weaker dollar helped oil prices rise. When the dollar drops, oil becomes cheaper for buyers using other currencies. This often boosts demand and drives prices higher. As a result, traders adjusted their positions again.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu made a statement that also influenced the markets. He said the result of the war with Iran could lead to new peace opportunities. This statement added to the easing of fears about oil supply risks.
Still, the rising U.S. demand during summer travel helped push prices up. With many Americans hitting the road, fuel consumption increased. This seasonal trend is common and often adds pressure to oil prices.
Though the Iran-Israel ceasefire calmed political concerns, market forces in the U.S. kept oil prices moving up. Demand, inventory levels, and currency shifts all played a part in shaping the current oil outlook.