ISLAMABAD (PEN) : Crude oil prices declined on Friday after U.S. President Donald Trump announced he would postpone his decision on possible American military involvement in the ongoing Israel-Iran conflict, offering markets a temporary pause amid heightened geopolitical tensions.
Diplomatic Window Eases Immediate Concerns
According to White House Press Secretary Karoline Leavitt, President Trump will take the next two weeks to evaluate the potential for diplomatic engagement with Tehran before making a final call on intervention.
“If there’s a chance for diplomacy, the president’s always going to grab it,” Leavitt stated. “But he’s not afraid to use strength as well.”
The announcement followed a week of intensifying hostilities between Israel and Iran, raising fears of a wider regional war. Market analysts noted that the delay injected a degree of short-term stability, although overall volatility remained elevated.
Oil Prices React Sharply
Brent crude futures dropped 2.4% to settle at *\$76.94* per barrel, while West Texas Intermediate (WTI) slid 1.9% to *\$73.62*. Despite the dip, analysts warned the market remains highly sensitive to any shifts in the geopolitical landscape.
“President Trump’s two-week ‘thinking window’ is no cooling-off period — it’s a ticking volatility clock,” said Stephen Innes of SPI Asset Management.
Markets Mixed Amid Trade and Inflation Worries
Equity markets showed mixed trends. Asian indices moved in different directions:
Seoul’s Kospi* led gains, surpassing 3,000 points for the first time in over three years.
Hong Kong’s Hang Seng* rose 0.7%, while *Shanghai Composite* inched up 0.1%.
Tokyo’s Nikkei* dipped 0.1%, pressured by rising core inflation and surging rice prices, a sensitive issue ahead of Japan’s elections.
In Europe, the *FTSE 100* slipped 0.6% to *8,791.80*, reflecting broader investor caution amid global uncertainty.
Key Market Figures (as of June 19, 2025)
Crude Oil
Brent: *\$76.94* (−2.4%)
WTI: *\$73.62* (−1.9%)
Stock Indices
* Nikkei 225: *38,445.57* (−0.1%)
* Hang Seng: *23,400.62* (+0.7%)
* Shanghai Composite: *3,363.93* (+0.1%)
* FTSE 100: *8,791.80* (−0.6%)
Currency Exchange Rates
* Euro/USD: *\$1.1519* (+)
* Pound/USD: *\$1.3486* (+)
* Dollar/Yen: *145.25* (−)
* Euro/Pound: *£0.8541*
Outlook Remains Uncertain
While President Trump’s delay eased immediate fears, global investors remain wary. European officials are reportedly planning a diplomatic meeting with Iranian leaders in Geneva aimed at de-escalating tensions.
Meanwhile, concerns over the expiration of a U.S. tariff truce are adding to market anxieties, as the administration’s trade policy direction remains unclear.
