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Oil prices fell to the lowest level in more than a week on Tuesday, 24 June, after US President Donald Trump’s public statement about the agreement between Israel and Iran on a 12-hour ceasefire, Reuters reports .
Brent fell by USD 2.08 (-2.9 %) to USD 69.40 per barrel – earlier the decline exceeded 4 % and reached the lowest price since 11 June. WTI fell by USD 2.03 (-3.0%) to USD 66.48 per barrel, down 6% to its lowest since June 9 at the start of the session.
“If the ceasefire is upheld, investors can expect the oil market to stabilise,” said Priyanka Sachdeva, Senior Research Analyst at Phillip Nova.
Donald Trump announced that Iran would immediately begin a ceasefire, and Israel would join in 12 hours later. If both sides keep the pause, the “12-day conflict” will end in 24 hours, officially ending the eponymous conflict.
Iran, OPEC’s third-largest crude oil producer, will be able to increase exports and prevent disruptions that have been pushing prices to five-month highs in recent days following US strikes on Iranian nuclear facilities.
The markets have now calmed down somewhat: despite fears of a blockade of the Strait of Hormuz – through which about 18-19 million barrels of oil (almost 20% of global consumption) pass daily – traders have temporarily taken a breather after the recent price spikes.
