Global oil prices fell by more than 6% after the United States and Iran paused hostilities, easing fears of a wider conflict that could disrupt energy supplies from the Middle East.
Brent crude and U.S. West Texas Intermediate (WTI) both recorded sharp declines as traders responded to signs of reduced geopolitical tensions. The market had previously surged on concerns that prolonged fighting could threaten key oil shipping routes and regional production.
Analysts said the ceasefire has improved investor confidence, prompting a sell-off in oil as concerns over immediate supply disruptions eased. However, they cautioned that prices could remain volatile if tensions between the two countries escalate again.
Energy markets continue to monitor developments in the Middle East closely, as the region remains a critical source of global oil exports. Any renewed conflict could quickly reverse the recent decline in crude prices.
