Global oil prices tumbled on Tuesday following Israel’s agreement to U.S. President Donald Trump’s ceasefire proposal with Iran, easing fears of a prolonged energy crisis in the wake of nearly two weeks of conflict.
The truce, aimed at halting hostilities between the two regional foes, brought immediate relief to global markets that had been rattled by escalating military tensions.
By 08:30 GMT, Brent crude had fallen by 3.5%, trading at $69.00 per barrel. The U.S. benchmark, West Texas Intermediate (WTI), also slipped 3.5%, dropping to $66.10 per barrel.
READ ALSO: Israel Backs Trump’s Ceasefire Plan with Iran, Declares Military Objectives Achieved
The decline came just a day after prices briefly surged on speculation that Iran might retaliate against a U.S. strike on its nuclear facilities by disrupting oil shipments through the vital Strait of Hormuz—through which roughly a fifth of the world’s oil supply flows.
The ceasefire announcement appears to have calmed immediate concerns, with markets reacting positively to signs of de-escalation. Asian stocks climbed on the news, and early trading in Europe saw gains in major indices, with London, Paris, and Frankfurt all opening higher.
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