Oil prices plunged on Tuesday to their lowest levels in more than a week after U.S. President Donald Trump announced that Israel and Iran had reached a ceasefire agreement, calming investor fears over potential supply disruptions in the Middle East—one of the world’s top oil-producing regions.
As of 0330 GMT, Brent crude futures were down $2.08, or 2.9%, at $69.40 per barrel, after falling more than 4% earlier in the session and hitting its lowest level since June 11. Similarly, U.S. West Texas Intermediate (WTI) crude dropped $2.03, or 3.0%, to $66.48 per barrel, after diving as much as 6% to its weakest point since June 9.
President Trump’s announcement on Monday revealed that Iran had agreed to an immediate ceasefire, with Israel to follow 12 hours later. If both sides uphold the truce, the 12-day conflict would officially end after 24 hours of peace.
“If the ceasefire is followed as announced, investors might expect the return to normalcy in oil,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
The prospect of peace in the region, even if provisional, has temporarily cooled oil market jitters and shifted attention back to fundamentals such as global demand and inventory levels.
