Oil prices plunged on Tuesday to their lowest in more than a week as U.S. President Donald Trump said a ceasefire had been agreed between Iran and Israel, easing concerns about supply disruptions in the region.
Brent crude futures fell $2.69, or 3.76%, to $68.79 a barrel by 0006 GMT, after falling more than 4% earlier in the session and hitting their lowest since June 11.
U.S. West Texas Intermediate crude fell $2.7, or 3.94%, to $65.46 a barrel, after hitting its weakest since June 9 earlier in the session and dropping about 6%.
Trump announced on Monday that Israel and Iran had fully agreed to a ceasefire, adding that Iran would begin the ceasefire immediately, followed by Israel after 12 hours. If both sides keep the peace, the war will officially end after 24 hours, ending 12 days of conflict.
He said a "complete and total" ceasefire would be in place with the aim of ending the conflict between the two countries.
"With the ceasefire news, we now see the continuation of the risk premium that was built into crude prices last week almost evaporate," said Tony Sycamore, analyst at IG.
Iran is OPEC's third-largest crude producer, and easing tensions would allow it to export more oil and prevent supply disruptions, a major factor in the surge in oil prices in recent days.
Both oil contracts closed more than 7% lower in the previous session after rallying to five-month highs after the US attacked Iran's nuclear facilities over the weekend, stoking fears of a wider Israel-Iran conflict.
"Technically, overnight's selloff reinforced a resistance layer between about $78.40 (October 2024 and June 2025 highs) and $80.77 (this year's high), and it's clear that it would take something very unexpected and supply-detrimental for crude to break through this resistance layer," Sycamore added. (alg)
Source: Reuters
Oil prices rose after President Donald Trump said he would shorten the deadline for Russia to agree to a ceasefire in Ukraine, adding to earlier gains from the U.S.-European Union trade deal. Brent o...
Oil prices edged higher on Monday (July 28th) as investors assessed the trade deal between the United States and the European Union, while a stronger US dollar and lower oil imports from India weighed...
Oil prices rose on Monday after the United States clinched a trade deal with the European Union and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic...
Oil rose after the US and European Union agreed on a trade deal ahead of President Donald Trump's tariff deadline of Aug. 1. Brent was near $69 a barrel after closing 1.1% lower on Fri...
Oil steadied after the US and European Union agreed on a trade deal ahead of President Donald Trump's tariff deadline of Aug. 1. Brent was above $68 a barrel after closing 1.1% lower on Friday, and W...
The U.S. central bank, to President Donald Trump's chagrin, will likely leave interest rates unchanged at a policy meeting this week, but that's not to say there won't be a vigorous debate, with one if not two Federal Reserve governors possibly...
The US Dollar (USD) starts the week on a firmer note, extending its modest recovery since Thursday, as easing global trade tensions lift investor sentiment. Interestingly, the Greenback, which typically underperforms in a risk-on environment, is...
Gold is trading in a narrow range on Monday, as economic data, easing trade tensions, and the fragility of the US Dollar continue to influence price action. At the time of writing, Gold is trading near $3,310 per ounce, down from earlier highs...
The S&P 500 rose 0.4% on Friday (July 25), notching its fifth consecutive record close—its longest streak in more than a year—while the Nasdaq...
European governments and companies reacted with a mix of relief and concern on Monday (July 28th) to the framework trade agreement reached with US...
The United States and European Union have reached a landmark trade agreement that includes a 15% tariff on EU goods entering the U.S., President...
Major bourses in Europe were higher on Monday, with the STOXX 50 adding 1.3% and the STOXX 600 gaining 1%, after the US and European Union reached a...