Key points
- Trump announces “complete and total” ceasefire between Israel and Iran
- Benchmarks down around 3pc
- Both oil contracts settled over 7pc lower in the previous session
ISLAMABAD: Oil prices fell five per cent after Israel agreed to a ceasefire proposal, according to AFP.
Earlier, oil prices fell sharply to their lowest in more than a week on Tuesday as US President Donald Trump said a ceasefire has been agreed between Iran and Israel.
The announcement alleviated worries of supply disruptions in the Middle East.
Brent crude futures were down $2.08, or 2.9 per cent, at $69.40 a barrel around 0330 GMT, after earlier tumbling more than 4 per cent and touching its lowest level since June 11, according to Reuters.
US West Texas Intermediate crude declined $2.03, or 3.0 per cent, to $66.48 per barrel, having dived 6 per cent to its weakest level since June 9 earlier in the session.
Trump claims ceasefire
Trump announced on Monday that Israel and Iran have fully agreed to a ceasefire, adding that Iran will begin the ceasefire immediately, followed by Israel after 12 hours. If both sides maintain peace, the war will officially end after 24 hours, concluding a 12-day conflict.
“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.
“Moving forward, the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices,” Sachdeva said.
According to Anadolu news agency, US stocks ended the first trading day of the week with gains as oil prices eased.
Positive trends
Stock markets saw positive trends despite ongoing geopolitical tensions in the Middle East.
In a statement on social media, US President Donald Trump thanked Iran for giving Washington advance notice of the attack, saying this prevented any loss of life or injury.
“Perhaps Iran can now proceed to peace and harmony in the region, and I will enthusiastically encourage Israel to do the same,” he said.
Oil prices fell after Iran’s retaliation to the US attacks did not result in any casualties.
The price of Brent crude fell around 7.2 per cent to $71.48 per barrel, the Turkish news agency reported.
The Dow Jones Industrial Average rose 0.89 per cent, or 374.96 points, to close at 42,581.78.
