WTI tumbles to near $65.00 as Trump announces Israel-Iran ceasefire

• WTI price edges lower to around $65.15 in Tuesday’s early Asian session. 

• Iran’s retaliatory missile strike on a US airbase raised hopes that the conflict would not immediately disrupt oil supplies. 

• The Fed’s dovish tone might weigh on the US dollar and help limit the WTI’s losses. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.15 during the Asian trading hours on Tuesday. The WTI price falls as US President Donald Trump said a ceasefire has been agreed upon between Iran and Israel, relieving fears of supply disruption in the region. 

Iran’s parliament has voted to shut down the Strait of Hormuz in retaliation against Trump’s attack on the country over the weekend. However, no casualties were reported after the strike. Instead, Iran attacked a US military base in Qatar in retaliation for the US attacks on its nuclear facilities. 

Furthermore, Trump said on Monday that a "complete and total" ceasefire between Israel and Iran will go into effect in order to end the conflict between the two nations. The initial impact of the conflict on oil and gas markets remained relatively limited, which might undermine the WTI price in the near term. 

On the other hand, the dovish remarks from the Federal Reserve (Fed) officials could weigh on the Greenback and support the USD-denominated commodity price. Fed’s Vice Chair for Supervision Michelle Bowman said on Monday that the time to cut interest rates is getting nearer as risks to the job market may be on the rise. A weaker USD makes oil cheaper for foreign buyers, increasing demand and pushing prices higher.

Oil traders will take more cues from Chair Jerome Powell’s semiannual testimonies and the release of US Consumer Confidence later on Tuesday. Also, weekly crude oil stock from the American Petroleum Institute (API) is due later in the same day.