Crude Oil Prices Drop After US-Iran Ceasefire Announcement

Crude oil prices experienced a notable decline after a ceasefire announcement between the U.S. and Iran. Brent crude futures fell by $5.70, approximately 5.9%, to $91.08 per barrel, while U.S.

West Texas Intermediate (WTI) crude dropped $4.80, or about 5.4%, to $84.51 per barrel by 0804 GMT. Both benchmarks are now at their lowest levels in nearly a week, reversing the gains made over the past three weeks.

Previously, Brent crude had reached $100 per barrel due to disruptions in oil shipments through the Strait of Hormuz and the Red Sea, impacting exports from Saudi Arabia, the world's largest oil exporter, via the Bab el-Mandeb Strait to Asia. U.S.

Ambassador to the United Nations, Mike Waltz, stated that President Donald Trump decided to pause U.S. attacks to allow for more diplomatic efforts. Shipping data from Kpler indicated that fewer than 10 commodity vessels passed through the Strait of Hormuz each day over the weekend, as noted by PVM analyst John Evans and MST Marquee analyst Saul Kavonic.