Oil prices fall after Biden says Iran could refrain from attacking Israel if cease-fire reached
Oil futures fell Wednesday with U.S. crude closing below $77 per barrel, after President Joe Biden said Iran might refrain from attacking Israel if a cease-fire deal is reached in Gaza.
Biden told reporters Tuesday afternoon his “expectation” is Iran would not strike Israel if a deal is clinched to stop the fighting in Gaza, though he said efforts to broker a cease-fire are “getting hard.”
A new round of cease-fire talks is scheduled to begin Thursday in Qatar, though Hamas told Reuters that the militant group does not plan to take part in the negotiations.
Here are Wednesday’s closing energy prices:
- West Texas Intermediate September contract: $76.98 per barrel, down $1.37, or 1.75%. Year to date, U.S. crude oil has gained 7.4%.
- Brent October contract: $79.76 per barrel, down 93 cents, or 1.15%. Year to date, the global benchmark is ahead 3.53%.
- RBOB Gasoline September contract: $2.32 per gallon, down more than 5 cents, or 2.26% Year to date, gasoline is up 10.4%.
- Natural Gas September contract: $2.22 per thousand cubic feet, up 7 cents, or 3.31%. Year to date, gas is down 11.7%.
Iran had vowed to retaliate against Israel after a Hamas leader was assassinated in Tehran two weeks ago. Israel has put its military on high alert, and the U.S. is dispatching a carrier strike group and guided-missile submarine to the region to help defend its ally.
WTI vs. Brent
U.S. crude oil prices jumped more than 4% on Monday on escalating tensions between Iran and Israel, but have since pulled back as softening demand in China has weighed on the market.
“There is still a prevailing view in Washington that Iran does not want a regional war, preferring a grey-zone, proxy conflict,” Helima Croft, head of global commodity strategy at RBC Capital Markets, told clients in a research note Tuesday.
But the White House efforts to contain the conflict may prove difficult, with a cease-fire deal in Gaza still elusive, according to Croft. Delaying an attack by Iran beyond this week “seems precarious,” she wrote.
U.S. crude inventories rose by 1.9 million barrels in the week ended Aug. 9, while gasoline stocks fell by 2.9 million barrels, according to data released by the Energy Information Administration Wednesday.
Matt Smith, lead oil analyst for the Americas at Kpler, said a modest increase in demand and lower production led to draws for gasoline and diesel. Summer driving season is nearing its end, while hurricane activity will likely ramp up this month before peaking in early September, Smith said.
Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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