Oil prices drop as Israel and Iran agree to ceasefire

Oil prices tumbled by nearly 5% on Tuesday after Israel agreed to a ceasefire with Iran following nearly two weeks of conflict. Stock markets in the UK, Europe, and Asia rose as US President Donald Trump confirmed the ceasefire. Prices had spiked due to concerns about Iran disrupting global supplies through the Strait of Hormuz.

Brent crude, the international oil benchmark, fell to $68 a barrel, below the level when Israel launched missiles against Iran's nuclear sites on June 13. Oil prices had soared to $81 a barrel during the conflict, raising fears of increased living costs.

Market analyst Priyanka Sachdeva noted that if the ceasefire holds, investors may anticipate a return to normalcy in oil prices. The adherence of Israel and Iran to the ceasefire conditions will be crucial in determining future oil prices.

Global stock markets reacted positively to the ceasefire news, with indices in the UK, France, Germany, Japan, and Hong Kong all posting gains. Trump urged both countries to respect the ceasefire, with Israel stating it agreed after neutralizing the Iranian nuclear threat.

The conflict had raised concerns about higher energy prices impacting bills and petrol costs globally. Similar situations in the past, such as Russia's invasion of Ukraine, have led to increased expenses for consumers worldwide.

According to the source: BBC.