Oil & Gas

Oil remains steady as Trump undecided on joining conflict

By Pramod Kumar

June 19, 2025, 8:45 AM

People take cover in a cable car tunnel in Haifa following a missile attack on Israel by Iran

US Fed keeps interest rates steady
GCC markets close slightly lower
Gold continues to increase

Oil prices held steady on Thursday morning following President Donald Trump’s contradictory remarks on US involvement in the escalating Israel-Iran conflict.

Brent crude futures stood at $76.54 by 03.45 GMT. US West Texas Intermediate crude was trading at $75.10 a barrel.

Oil prices rose more than 10 percent last week following the escalation of attacks between Israel and Iran.

Iranian leader Ayatollah Ali Khamenei rejected Trump’s demand for an “unconditional surrender”, as the US president reportedly said “his patience had run out”. He did not comment on any plans regarding US involvement in the conflict.

Iran has threatened to block the Strait of Hormuz, a critical waterway through which passes about one fifth of the world’s oil.

“If the Hormuz was blocked, it would, of course, immediately register in oil prices,” said oil historian and S&P Global vice chairman Daniel Yergin.

“But I think it should not be underestimated that the US navy has had about 40 years to prepare for what to do, so it’s not like it would remain blocked, and there would be a high price for those who blocked it.”

The US central bank held interest rates steady on Wednesday at 4.25 percent to 4.5 percent, unchanged since December 2024, when it was lowered a quarter percentage point.

Mirroring the move, the Central Bank of the UAE maintained the base rate on the overnight deposit facility at 4.40 percent, UAE state-run Wam news agency said.

Fed Chair Jerome Powell warned that consumer inflation could pick up in the coming months as the impact of newly imposed tariffs begins to filter through the economy.

Equity markets in the Gulf Cooperation Council (GCC) region closed lower on Wednesday.

Saudi Arabia’s main index dropped 1.2 percent, with Flynas – the budget airline backed by Prince Alwaleed bin Talal – falling 4 percent to SAR 77.30.

Dubai’s benchmark index declined 1.2 percent, while Abu Dhabi retreated 0.6 percent. The Qatari index slipped 0.6 percent.

In the US, the Dow Jones Industrial Average closed 0.1 percent lower and S&P 500 slipped 0.03 percent. On the other hand, the Nasdaq Composite gained 0.13 percent.

Gold prices edged higher as the conflict entered the seventh day.

Spot gold price rose 0.2 percent to $3,376.48 an ounce, while US gold futures eased 0.4 percent to $3,393.70.