Mumbai : Global crude oil prices saw a sharp decline following an announcement by U.S. President Donald Trump that Iran and Israel had agreed to a ceasefire.
As of 6:00 AM GMT on Tuesday (June 24), Brent crude dropped by 3.37% to $69.07 per barrel, while West Texas Intermediate (WTI) fell by 3.35% to $66.09 per barrel.
Analysts attributed the fall to easing fears over potential disruptions to oil exports through the Strait of Hormuz — a key transit route for global crude supply.
Expert Reactions
Tony Sycamore, market analyst at IG, said the ceasefire effectively removed the geopolitical risk premium that had been priced into oil.
“If the ceasefire is implemented as stated, investors may expect the oil market to return to normal,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Chris Weston, Head of Research at Pepperstone, told Reuters, “With tensions easing, the market has repriced risk, and Trump played a key role in securing a peaceful agreement.”
Industry Observes Cautiously
According to Rystad Energy, Iran’s limited response and avoidance of targeting the Strait of Hormuz indicate a willingness to de-escalate, providing some relief to global markets.
A report from AInvest noted that if the ceasefire proves credible, it is likely to trigger an unwinding of the geopolitical premiums embedded in oil futures.
What Lies Ahead?
Market participants will now watch closely to see whether the ceasefire holds and whether Iran avoids threatening key oil routes, particularly the Strait of Hormuz.
If no further escalation occurs, analysts expect oil prices to stabilize near pre-conflict levels. However, any renewed tensions could push prices back into upward volatility.
