Oil prices extended their slide during Tuesday trade in Asia as Iranian state media announced a ceasefire deal, easing investors’ concerns over supply disruptions.
US West Texas Intermediate crude last slumped by 2% to $67.13 per barrel, hitting its lowest level in nearly two weeks. Brent crude, the global benchmark, was down 1.8% to $67.17 a barrel.
Late on Monday, Trump announced what he called “a complete and total” ceasefire between Israel and Iran in a post on social media, which he said he hoped would become permanent. Iranian state media announced Tuesday a ceasefire has been “imposed on the enemy.”
On Monday, oil prices lost more than 7% after Iran launched targeted and limited missiles strike at US bases in Qatar. US crude tumbled 7.2% to settle at $68.51 a barrel, the biggest one-day drop since early April and one of the worst days over the past three years. Brent closed at $71.48 a barrel, down 7.2%, the steepest since August 2022, according to Reuters.
The last time US oil traded below $70 was June 12, a day before Israel began launching strikes at Iran’s nuclear facilities. The decline in crude prices marks a dramatic turnaround from Sunday evening, when prices spiked 6% to as high as $78.50 a barrel.Oil prices had jumped over 10% to a five-month high since the start of hostilities, over concerns of potential disruption to global oil supply.
