Global oil prices fell sharply on Tuesday, hitting their lowest levels in more than a week, as easing tensions in the Middle East tempered fears of supply disruptions.
Brent crude futures dropped by $2.08, or 2.9%, to $69.40 per barrel as of 7:01 a.m. WAT, after earlier plunging over 4% to their lowest point since June 11. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell $2.03, or 3.0%, to $66.48, having earlier slid by 6% to reach its weakest level since June 9.
The latest decline followed a steep drop in the previous session, where both contracts settled over 7% lower, unwinding gains from earlier rallies driven by concerns over escalating conflict between Israel and Iran.
Market sentiment shifted after U.S. President Donald Trump announced on Monday that a ceasefire agreement had been reached between the two countries, significantly reducing the perceived risk of a broader regional conflict that could threaten global oil supplies.
“Iran will begin the ceasefire immediately, followed by Israel after 12 hours,” President Trump stated. “If both sides maintain peace, the war will officially end after 24 hours.”
Prices had already tumbled over 6% on Monday after Iran launched a missile strike on a U.S. military base in Qatar, in retaliation for earlier American airstrikes on Iranian nuclear facilities over the weekend.
Iran, a key member of OPEC and the cartel’s third-largest crude producer, has played a central role in recent market volatility. With tensions easing, analysts believe the country could resume higher oil exports, alleviating fears of near-term supply disruptions.
Investor attention had also turned to the Strait of Hormuz, a strategic chokepoint between Iran and Oman through which nearly one-fifth of the world’s oil supply — approximately 18 to 19 million barrels per day — passes. Concerns over a possible blockade had contributed to the sharp price spikes seen in previous days.
Now, with the prospect of de-escalation, oil markets appear to be stabilizing — though analysts warn that further developments could continue to cause volatility in the days ahead.
