SC Crude Oil Futures Fall Over 6% as U.S. Halts Iran Airstrikes on July 25

According to market reports, SC crude oil futures fell over 6% by early trading on July 25 after the U.S. halted its aerial campaign against Iran, ending 13 consecutive days of nightly strikes. The pause aims to create diplomatic space, as the U.S. and Iran continue indirect talks facilitated by Pakistan and Qatar. The shift from military escalation to negotiation has prompted market expectations that geopolitical risk premiums in crude prices will contract significantly.

Meanwhile, Iran and Oman have made progress on discussions regarding Strait of Hormuz transit, while Saudi Arabia, the UAE, and Iraq are accelerating pipeline and port construction to reduce dependence on the strategic chokepoint. However, Houthi forces attacked three Saudi oil tankers in the past 48 hours and maintained partial maritime blockades, indicating tail risks remain.