Oil prices tumbled nearly 6% today, reaching their lowest levels in two weeks, as fears eased over Middle East supply disruptions followed the announcement of a ceasefire between Israel and Iran.
However, despite the deal, U.S. President Donald Trump has accused both countries of violating the truce within hours, casting doubt on its durability, reports Al-Rai daily.
Brent crude futures dropped $4.02, or 5.6%, to $67.46 a barrel by 17:26 GMT, while U.S. West Texas Intermediate (WTI) crude fell $4.14, or 6.04%, to settle at $64.37—a level not seen since June 10.
“The geopolitical risk premium that had built up since the first Israeli strike on Iran has completely vanished,” said Tamas Varga, senior analyst at PVM Associates.
Investor attention had previously turned to the Strait of Hormuz, a key oil transit route, amid fears of further escalation. However, market sentiment shifted after Trump posted that China could now resume buying Iranian oil, a signal seen as easing sanctions pressure.
Meanwhile, market watchers await inventory data from the American Petroleum Institute and the U.S. Energy Information Administration, due Tuesday and Wednesday respectively, for further pricing direction.
