Following the announcement of a ceasefire between Iran and Israel, global oil markets saw a major drop in crude prices. Brent crude fell nearly 9%, bringing the price down to $70 per barrel. The sudden decline reflects market optimism that tensions in the Middle East may ease for now.
Meanwhile, West Texas Intermediate (WTI) crude also saw a significant drop. Its price fell by 7.22%, now trading at $68.51 per barrel. Market experts believe this sharp decrease is a direct result of the ceasefire news and reduced fears of supply disruptions.
Just hours earlier, US President Donald Trump confirmed the start of a ceasefire between Iran and Israel. He stated that both countries have agreed to stop military actions and that Israel has reopened its airspace. This announcement brought immediate relief to global markets.
Iran has also confirmed that it has begun implementing the ceasefire. This move has further boosted investor confidence and reduced concerns over escalating conflict in the region, especially around key oil-producing zones.
Oil prices had been rising sharply in recent weeks due to fears of war between Iran and Israel. However, the recent peace efforts and Trump’s direct involvement in brokering the truce have helped ease tensions and stabilize the energy market.
As the situation develops, experts will closely watch for any signs of renewed conflict. But for now, the global oil market appears to be reacting positively to the ceasefire and hopes for lasting peace in the Middle East.