Oil Prices Plunge as Trump Announces Iran-Israel Ceasefire, Easing Supply Fears

Oil prices dropped significantly on Tuesday, reaching their lowest in over a week, after US President Donald Trump announced a ceasefire agreement between Iran and Israel. Brent crude fell 3.76% to $68.79 per barrel, and West Texas Intermediate crude declined 3.94% to $65.46 per barrel. The ceasefire, effective immediately for Iran and after 12 hours for Israel, aims to end a 12-day conflict within 24 hours if peace holds. This eased fears of supply disruptions, as Iran, OPEC’s third-largest producer, can now export more oil. The price drop follows a 7% decline in the previous session, driven by reduced risk premiums after earlier fears of conflict escalation due to US attacks on Iran’s nuclear facilities. Analyst Tony Sycamore noted that the ceasefire news erased recent price gains, with technical resistance levels suggesting limited upward price movement unless major supply issues arise.