MARKET MOVEMENTS:
--Brent crude oil is down 4.9% to $67.08 a barrel
--European benchmark gas is down 12.2% to 35.57 euros a megawatt-hour
--Gold futures are down 2.2% to $3,318.30 a troy ounce
--LME three-month copper futures are down 0.2% at $9,679.50 a metric ton
TOP STORY:
Oil Prices Extend Slide, Even as Cease-Fire Looks Fragile
Oil prices retreated to levels last seen before Israel's June 13 strike on Iran, after the countries struck a fragile truce.
Brent futures fell nearly 5% to about $67 a barrel, extending Monday's sharp drop. West Texas Intermediate, the North American benchmark, shed about 5% to trade near $65. It had dropped 7.2% Monday after Iran's "measured" response to U.S. bombings.
President Trump announced a cease-fire between Israel and Iran late Monday, but by Tuesday, the truce already looked shaky. Israel accused Iran of firing missiles after the accord was struck, and vowed to "respond with force." In turn, Iran said Israel attacked within half an hour of Trump saying the truce was in effect.
OTHER STORIES:
Oil, Gas Tumble as Israel-Iran Cease-Fire Calms Supply Fears
Oil and gas prices plunged Tuesday after Israel confirmed a cease-fire with Iran, easing fears of a broader conflict in the Middle East and potentially severe disruptions to global energy flows.
In early trade, Brent crude was down 3.6% to $68 a barrel, while West Texas Intermediate fell 3.6% to $66.01 a barrel. Both contracts extended steep losses from the prior session, when they erased earlier gains and settled more than 7% lower after Iran's telegraphed attack against a U.S. base in Qatar.
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Iberdrola Names U.S. Business Head Pedro Azagra as New Group CEO
Iberdrola said it appointed Pedro Azagra, a company veteran who most recently led its U.S. business Avangrid, as the group's new chief executive, replacing Armando Martinez.
The Spanish utility company said Tuesday that Azagra will lead the company after three years overseeing its U.S. operations. The group, which has a networks and a renewables business in the U.S. has chosen Azagra at a time when offshore wind projects face political and regulatory scrutiny from the Trump administration.
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Trump Says China Can Buy Oil From Iran
President Trump said China can purchase Iranian oil, despite his administration's imposition of numerous sanctions designed to impede such trade. The U.S. has sanctioned Chinese refineries, port operators and other companies for importing Iranian crude as part of its broader "maximum pressure" campaign against Tehran.
"China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also," Trump wrote in a post on Truth Social. Roughly 90% of Iranian oil exports go to China. To evade sanctions, some traders have transported Iranian oil to China and other destinations using companies based in Malaysia, China, India and the United Arab Emirates.
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Schlumberger Seeing Greater Uncertainty, Mixed Regional Activity
Schlumberger is facing high levels of uncertainty in the current quarter, prompting mixed activity in certain regions.
"Looking broadly across the energy markets, there has been a lot of uncertainty this quarter, including OPEC+ announcements, tariff negotiations and geopolitical escalations," said Chief Executive Olivier Le Peuch at an energy conference, according to a securities filing.
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Cheniere Boosts Production Outlook on Increased Capacity
Cheniere Energy raised its run-rate liquefied natural gas production outlook by 6 million tons annually, reflecting increased capacity across two of its largest facilities.
The biggest U.S. LNG producer on Tuesday said it now expects an annual run-rate capacity of 60 million to 63 million tons through 2030, up from a prior expectation of 54 million tons to 57 million tons.
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Hunting Completes $68 Million Purchase of Flexible Engineered Solutions
Hunting said it completed the acquisition of Flexible Engineered Solutions for $67.6 million in cash, and that it was reviewing its capital allocation policy after the deal.
The engineering group said the 50 million-pound ($67.6 million) deal would strengthen its growing offshore oil and gas and subsea business. The acquisition is expected to be accretive to earnings in the first full financial year of ownership before transaction associated costs are taken into account, it said.
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Rio Tinto, Hancock to Jointly Invest $1.6 Billion in Hope Downs 2 Project -- Update
SYDNEY--Rio Tinto and the mining business of billionaire Gina Rinehart will together invest $1.6 billion to develop two large iron-ore deposits in Western Australia's Pilbara region.
Rio Tinto said the Hope Downs 2 project, being developed in partnership with Hancock Prospecting, will include two new pits capable of producing a combined 31 million metric tons of iron ore each year. The mines and associated infrastructure are expected to be operational by 2027.
MARKET TALKS:
Coffee Futures Extend Downturn -- Market Talk
1051 ET - ICE coffee futures are continuing a pattern of selling with most-active futures down 3.2% to $3.16 a pound. That's the lowest it's been since early January, according to FactSet data. Coffee rose 3.7% on Monday, breaking a four-session losing streak. Weather in growing areas has been mostly supportive, and a 'soft frost' seen in Brazil this week isn't changing the momentum. "Cooler weather is forecast for some coffee growing areas in Brazil this week, but it is not expected to be enough to induce permanent damage," says ADM Investor Services in a note. (kirk.maltais@wsj.com)
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Cattle Climbs After Recent Downturn -- Market Talk
1024 ET - CME live cattle futures are higher following declines in recent weeks. The most-active contract has fallen for seven out of the past nine trading sessions. The recent weakness is part of a technical correction for the contract, says Naomi Blohm of Total Farm Marketing in a note. Blohm adds that the question now is if futures resume pushing toward new record highs after this period of relative weakness. "The past 5 times the market has corrected like this over the past year, the correction lasts for a few days, then the uptrend resumes," Blohm notes. Live cattle is up 1%, while lean hogs fall 1.9%. (kirk.maltais@wsj.com)
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Slide in Energy Prices Hits Grains -- Market Talk
1017 ET - Crude oil futures are down more than 4% in early trading, as President Trump vocally encourages Israel and Iran to stand down in their current conflict. As a result, potential supply issues stemming from a war are being neutralized on the futures market. This is also being felt in grains, as the connection of corn and soybeans to alternative fuels like ethanol and biodiesel make the movement of oil prices important. Corn is up 0.2%, soybeans down 0.8%, wheat down 2.3% in early trading.(kirk.maltais@wsj.com)
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U.S. Natural Gas Futures Grind Lower -- Market Talk
1008 ET - Natural gas futures are down for a third session as market participants look beyond this week's heat wave driving high demand. Ritterbusch says large price swings up and down are likely to continue as the weather takes on greater importance over the summer. "Although production has tapered off slightly this week and exports have slipped, the gas balances currently remain tilted bearish with the supply surplus likely to increase further" with this week's EIA storage report, the firm says. "But from here, we see additional increase in the surplus as limited with a potential significant reduction a high probability if the rest of the summer proves hotter than normal." Nymex natural gas is down 1.8% at $3.630/mmBtu. (anthony.harrup@wsj.com)
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Traders Look Past Winter Wheat Health Issues -- Market Talk
0944 ET - Winter wheat crops globally appear to struggle with health issues. Prior to this week, CBOT wheat had been on the rise for four out of the previous five sessions, with prices rising roughly 11% in that time according to FactSet data. But they've since given back some of those gains, even after the USDA reported Monday that the U.S. winter wheat crops are well behind their harvesting pace of this time last year. Gains in futures may be partly because of increased wheat expected out of Russia, says Commerzbank in a note. The firm also says that Israel vs. Iran hostilities finding a stopping point may lessen potential supply chain hiccups. But uncertainty remains there, as the idea of a lasting ceasefire between Israel and Iran appears tenuous. (kirk.maltais@wsj.com)
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Oil Extends Losses As Trump Says China Can Buy Iranian Oil -- Market Talk
0940 ET - Oil futures move deeper into the red after President Trump posts on Truth Social that China can buy oil from Iran. "China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also," Trump says. China is one of the main buyers of Iranian crude, and the U.S. has sanctioned a number of independent Chinese refineries that take the oil. The post follows an Israel-Iran ceasefire announcement that has taken geopolitical risk premium out of the price of oil. WTI is off 4.8% at $65.22 a barrel, and Brent falls 4.7% to $68.10 a barrel. (anthony.harrup@wsj.com)
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Oil Market Focus to Return to Fundamentals -- Market Talk
0921 ET - While the ceasefire between Israel and Iran is proving fragile, focus in the oil market should turn back to "bearish fundamentals" as long as both sides avoid attacking oil infrastructure or disrupting shipping, David Oxley of Capital Economics says in a note. "The large fall in prices is the result of traders marking down the probability of some of the tail-risks facing global energy markets--particularly the closure of the Strait of Hormuz," he says. With headwinds to Chinese oil demand and additional supply from OPEC+, the firm sees a sizeable surplus developing over the next 18 months. WTI is off 3.8% at $65.93 a barrel, and Brent is down 3.8% at $68.74 a barrel. (anthony.harrup@wsj.com)
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Russian Exporters Set New Prices for Wheat -- Market Talk
0909 ET - Russian exporters have set wheat bids for the new marketing year, says SovEcon in a note. Bids are around 14,500 RUB per metric ton, or $184, the firm says. These prices may experience some short-term pressure as farmers accumulate a new winter wheat harvest, but production issues in the southern portion of the country as well as a possible reduction to export taxes may counteract that weakness, SovEcon says. CBOT wheat is down 1.8% pre-market. (kirk.maltais@wsj.com)
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Oil Likely to Hover Near $70 if Cease-Fire Holds, Rystad Says -- Market Talk
1213 GMT - Oil prices are expected to hold near $70 a barrel if the cease-fire between Israel and Iran remains in place, according to Rystad Energy. "The key takeaway for the oil markets is to observe how the cease-fire and the subsequent U.S.-Iran deal develop," Mukesh Sahdev, global head of commodity markets, says. "For now, signals remain uncertain, and geopolitical risks persist keeping volatility high, even as some progress toward peace is made." Market participants continue to monitor developments in the region and the potential impact on supply dynamics. Israel and Iran accused each other of launching attacks shortly after the cease-fire went into effect. In afternoon trade, Brent crude falls 3.7% to $67.93 a barrel, while WTI is down 3.6% to $66.01 a barrel. (giulia.petroni@wsj.com)
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Aluminum Pares Some Weekly Gains Following Middle East Cease-fire -- Market Talk
1159 GMT - Base metal prices are mixed, with LME three-month copper up 0.3% at $9,724.0 a metric ton and LME three-month aluminum down 0.6% at $2,577.0 a ton. Aluminum prices have retreated after Israel and Iran agreed to a tenuous cease-fire but are still 1.2% higher on week, after jumping sharply on Monday alongside oil prices. The metal's gains likely reflect the high energy intensity of aluminum production, Commerzbank analysts say in a note. This has in turn led to aluminum production being increasingly located in the Gulf region in recent years, Commerzbank writes. Therefore, there were concerns that a blockade of the Strait of Hormuz as threatened by Iran over the weekend would cause logistical difficulties, analysts write. (joseph.hoppe@wsj.com)
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Gold Futures Fall as Safe-haven Demand Ebbs on Cease-fire -- Market Talk
1026 GMT - Gold futures fall on de-escalation in the Middle East. Futures are down 1.7% at $3,337.70 a troy ounce. President Trump has announced that Israel and Iran agreed on a cease-fire, though uncertainty remains high. The precious metal has now given up all gains from its June rally, falling back to pre-escalation prices, SP Angel analysts say in a note. Gold ETFs had enjoyed inflows as investors sought out safe-haven assets, but now the market is rotating back into risk assets, SP Angel says. Still, gold's rally from 2022 lows of around $1,650/oz to now have been powered by foreign reserve diversification from central banks and growing concerns surrounding government debt, analysts write. These factors were the primary drivers behind gold's multi-year bull run, SP Angel says. (joseph.hoppe@wsj.com)
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Palm Oil Plunges Amid Easing Middle East Tensions -- Market Talk
1022 GMT - Palm oil plunged below 4,000 ringgit a ton amid easing tensions in the Middle East, with lower crude oil and soybean oil prices adding pressure on market sentiment, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng sees support at 3,900 ringgit a ton and resistance at 4,150 ringgit a ton. The Bursa Malaysia Derivatives contract for October delivery declined 140 ringgit to 3,986 ringgit a ton. (tracy.qu@wsj.com)
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Gold's Bullish Momentum Likely to Persist -- Market Talk
0957 GMT - Gold's bullish momentum is likely to persist, according to RHB research analyst Aiman Kamil Bin Ahmad Shauqi in a commentary. "Despite the indecisive pattern, the formation of a fresh 'higher high' close, accompanied by a long lower shadow, suggest the underlying buying interest remains intact," the analyst says. A long lower shadow indicates a period that prices initially fell significantly, but strongly rebounded after. The yellow metal is expected to build on its momentum and retest the US$3,500 resistance, RHB says. Given the sustained bullish momentum, RHB maintains its positive trading bias. Spot gold is down 1.4% at $3,320.03/oz. (tracy.qu@wsj.com)
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Congo Cobalt Export Ban Elevates Risks for Investors -- Market Talk
0931 GMT - The Democratic Republic of Congo's decision to extend the ban on cobalt exports for a further three months raises risks for investors in the world's top producer of the metal, says Oxford Economics Africa in a note. The ban, initially announced in February, led to a 53.7% surge in cobalt prices, although global markets are still saturated with high stocks. Congo accounts for over 70% of cobalt, which is increasingly in demand from electric vehicle manufacturers. "The government's ability to effectively manage its mineral resources is a crucial test of its governance and a key indicator of risk for international investors," Oxford says. "The extended ban could be counterproductive...as it increases uncertainty for manufacturers." (Nicholas.Bariyo@wsj.com;@Nicholasbariyo)
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Base Metal Prices Mixed Following Middle East Cease-fire Declaration -- Market Talk
0914 GMT - Base metal prices are mixed, with LME three-month copper up 0.45% at $9,738.0 a metric ton and LME three-month aluminum down 0.4% at $2,582.50 a ton. Copper has gained on the weaker U.S. dollar after President Trump said Israel and Iran had agreed to a ceasefire. The weaker dollar reflects lower safe-haven demand and makes it cheaper for international purchasers to buy dollar-denominated commodities, improving metals demand. On the other hand, aluminum slips as market concerns of energy supply disruption ease. Aluminum is particularly sensitive to energy market prices, given its energy-intensive production processes. However, Israel has accused Iran of violating the ceasefire, keeping market caution high. (joseph.hoppe@wsj.com)
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Israel-Iran Truce Could Lead to Sanction Easing, But Cease-Fire Remains Fragile -- Market Talk
0911 GMT - A permanent truce between Israel and Iran could prompt the Trump administration to reconsider its stance on sanctions and ease pressure on Tehran, according to DNB energy analysts. "If the cease-fire between Israel and Iran holds, and transforms into a permanent truce, we believe the Trump administration might be motivated to start easing the sanctions on Iran," Helge Andre Martinsen and Tobias Ingebrigtsen say. "We might exit this conflict with a more bearish setup than before conflict escalated." However, the cease-fire remains fragile, as Israel reported detecting Iranian missiles shortly after the agreement and said it would "respond with force." Brent crude and WTI trade 3.4% lower at $68.09 and $66.17 a barrel, respectively. (giulia.petroni@wsj.com)
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Gold Stocks Fall on Israel-Iran Cease-Fire -- Market Talk
0805 GMT - Gold stocks drop as easing tensions in the Middle East reduce safe-haven demand for gold. Continuous gold futures are down 1.7% at $3,338.30 a troy ounce. Gold has returned all gains made since Israel first launched strikes on Iranian nuclear facilities in mid-June. The fall comes as Israel confirms a cease-fire with Iran and says it has achieved its war aims. In the U.K., Endeavour Mining falls 3%, Hochschild Mining trades down 2.5% and silver and gold miner Fresnillo slips 1.4%. In South Africa, Harmony Gold tumbles 5.3% and Gold Fields falls 4.6%. (adam.whittaker@wsj.com)
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Gold Futures Drop on Israel-Iran Cease-Fire -- Market Talk
0729 GMT - Gold futures slump on easing safe-haven demand as President Trump announces a Middle East cease-fire. Futures are down 1.8% at $3,334.50 a troy ounce. The precious metal is now trading at levels last seen before Israel launched strikes on Iranian nuclear facilities in mid-June, which were followed by an Iranian retaliation and U.S. strikes over the weekend. Gold is still up nearly 23% year to date on geopolitical tensions, economic worries due to Trump's tariffs and strong central-bank buying, MUFG analysts say in a note. Market attention now turns to U.S. Federal Reserve Chair Jerome Powell's testimony for clues on potential interest-rate cuts near term, MUFG writes. Lower interest rates would boost the appeal of noninterest bearing bullion. (joseph.hoppe@wsj.com)
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European Oil Stocks Sink on Easing Middle East Tensions -- Market Talk
0720 GMT - European oil-and-gas stocks tumble in opening European trade as Israel confirms a cease-fire with Iran and says it has achieved its war aims. Brent crude drops 3.9% to $67.76 a barrel and WTI sinks 4% to $65.76 a barrel. In London, BP tumbles 6.2%, Shell falls 4.3% and Harbour Energy trades down 12%. France's TotalEnergies, Italy's Eni and Spain's Repsol all drop around 4%. (adam.whittaker@wsj.com)
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Iron Ore Lower; Prices Likely to Remain Rangebound -- Market Talk
0251 GMT - Iron ore is lower in early Asian trading. Prices are likely to remain rangebound without a strong trend, Nanhua Futures analysts say in a commentary. The black metal's fundamentals are relatively healthy, with both supply and demand staying robust, the analysts say. Still, high shipment volumes are expected to decline in July and investors will watch changes in hot metal output at that time, Maike Futures analysts say. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.2% at CNY704.5/ton. (tracy.qu@wsj.com)
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(END) Dow Jones Newswires
June 24, 2025 11:09 ET (15:09 GMT)
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