Oil Prices Plunge on Ceasefire Hopes

NEW YORK: Oil prices experienced a significant drop of 6% on Tuesday, reaching a two-week low. This decline is attributed to growing expectations that the ceasefire between Israel and Iran will de-escalate tensions and minimize the potential for disruptions in Middle Eastern oil supplies.

However, the stability of the ceasefire remains uncertain. U.S. President Donald Trump has accused both Israel and Iran of violating the agreement shortly after its announcement, casting doubts on its durability.

Brent crude futures decreased by $4.34, a 6.1% drop, settling at $67.14 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude fell by $4.14, or 6.0%, to close at $64.37.

These settlement prices represent the lowest levels for Brent since June 10 and for WTI since June 5. Both benchmarks had been trading at higher levels before Israel’s surprise attack on Iranian military and nuclear sites on June 13.