Just in: Oil prices tumble as Iran and Israel agree to ceasefire

DDM News

Oil prices dropped sharply on Tuesday, following the announcement of a ceasefire agreement between Iran and Israel.

The news sparked a sense of relief in global markets, easing fears of disruptions to oil supply from the Middle East.

Diaspora Digital Media (DDM) reports that the conflict between the two nations had stoked investor anxiety over a potential energy crisis.

A surprise social media post by former U.S. President Donald Trump declared a “complete and total” ceasefire between Iran and Israel.

Trump later clarified that the ceasefire was “in effect,” though official details remain vague and unconfirmed by diplomatic channels.

Despite the lack of clarity, Iranian and Israeli media outlets also confirmed that both sides had agreed to a ceasefire.

Investors reacted swiftly, with U.S. West Texas Intermediate (WTI) crude oil prices plunging by 3.7% to $65.9 per barrel.

Brent crude, the global oil price benchmark, also fell 3.8%, settling at $68.8 per barrel during European trading hours.

The decline followed an even steeper drop on Monday, when oil markets were rattled by Iran’s missile strikes on U.S. bases in Qatar.

In response to those attacks, U.S. crude dropped by 7.2% to close at $68.51 per barrel, its worst one-day performance in over three years.

Brent crude also suffered a 7.2% fall on Monday, ending the day at $71.48, its sharpest loss since August 2022.

According to Reuters, Monday’s tumble in oil prices was the most dramatic since April, highlighting market sensitivity to Middle Eastern tensions.

The initial missile strikes by Iran were described as targeted and limited, aimed at U.S. military positions in Qatar.

Analysts feared the attacks could trigger a wider regional conflict, threatening major oil supply routes like the Strait of Hormuz.

With the ceasefire now reportedly in place, those fears have been temporarily quelled, prompting a market rebound.

Despite the drop in prices, experts caution that the situation remains fluid and could change depending on future diplomatic developments.

Energy market analyst Elena Martinez told DDM, “Volatility will remain high until there is concrete, verified peace between both nations.”

She added that traders are watching for confirmation from official government channels before making long-term investment decisions.

The global oil market is highly sensitive to any potential disruption, especially from the Middle East, which holds nearly half of the world’s proven oil reserves.

Previous tensions between Iran and Israel have caused price spikes, as both nations are situated near key maritime oil transit routes.

Any escalation between the two could severely impact the global energy supply chain and trigger economic instability in oil-dependent countries.

Although the ceasefire news has momentarily stabilized the market, past patterns suggest that even temporary calm can be deceptive.

Political experts argue that a true resolution requires sustained diplomatic engagement, not just short-term ceasefire announcements.

“Until there is a lasting peace treaty, oil markets will continue to swing on every rumor, missile, or statement,” Martinez told DDM.

Investors remain cautious, with many watching Washington, Tehran, and Jerusalem for signs of a permanent end to hostilities.

Markets also await official confirmation of the ceasefire terms, especially as no detailed agreement has been published.

In the meantime, consumers may benefit slightly from the falling oil prices, which could lower fuel and transportation costs.

However, economists warn that the overall volatility may continue to disrupt global financial markets and energy sector planning.

DDM will continue to monitor developments in the region and provide updates on how they affect oil and energy prices globally.

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