Oil prices fell sharply to their lowest in more than a week on Tuesday after U.S. President Donald Trump announced a ceasefire between Iran and Israel, easing fears of supply disruption in the Middle East, one of the world’s leading oil producers.
Brent futures fell 4.04% to $68.59 a barrel, while U.S. West Texas Intermediate crude fell 4.10% to $65.70 a barrel after falling 6% earlier, its lowest since June 9.
Trump said on Monday that Iran and Israel had reached a deal. «Full.» The cease-fire, he said, would be considered over within 24 hours if both sides stick to the timetable, ending a 12-day standoff.
Priyanka Sachdeva, Senior Market Analyst «Philip Nova»: «If both sides stick to the ceasefire as announced, investors may expect oil prices to return to normal.»- Yeah.
She added: «In the future, the extent to which Iran and Israel adhere to the terms of the ceasefire will play a pivotal role in determining the direction of oil prices.»- Yeah.
Iran is the third largest producer of crude oil in the world. «OPEC»De-escalation will allow it to export more oil, contributing to the stability of supply, a key factor behind the rise in crude prices in recent days.
Oil prices tumbled more than 7 percent on Monday after hitting a five-month high following the U.S. attack on Iranian nuclear facilities over the weekend, raising fears of a worsening conflict between Israel and Iran.
