Oil prices have fallen sharply, falling below $100, after US President Donald Trump announced a two-week ceasefire and no attack on Iran.
Brent crude futures fell $14.51 (13.3%) to $94.76 a barrel, while WTI crude fell $17.16 (15.2%) to $95.79.
“Even if a peace deal is reached, Iran could threaten the Strait of Hormuz more frequently in the future, and the market will soon reassess the risks associated with the strait,” said Saul Kavonic, an analyst at MST Marquee.
Oil prices recorded their steepest monthly increase in history, exceeding 50%, during the US-Israeli war against Iran in March.
Commonwealth Bank analyst Vivek Dhar also expressed his opinion: “It is clear that in the near term, depending on the details of a comprehensive agreement, a significant geopolitical premium will remain.”
