Oil markets continued their downward slide on Tuesday as Iranian state media confirmed a ceasefire agreement with Israel, easing investor concerns over potential disruptions to global supply chains.
US West Texas Intermediate (WTI) crude dropped by 2% to $67.13 a barrel, its lowest in nearly two weeks. Brent crude, the international benchmark, slipped 1.8% to $67.17 per barrel. The declines came after US President Donald Trump announced a “complete and total” ceasefire between the two nations, with Iranian media later stating that the truce had been “imposed on the enemy.”
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The market had already been on edge after Iran launched a limited missile attack on US bases in Qatar, briefly driving crude prices up to $78.50 per barrel—the highest in five months. However, the ceasefire appears to have reversed the upward momentum, calming fears of prolonged supply interruptions.
On Monday, both WTI and Brent saw sharp drops of over 7%, marking their steepest one-day losses in more than a year. Analysts say the market is now shifting focus from geopolitical risk to fundamentals like inventory levels and global demand.
