Brent crude prices plunged as much as 16% to $91.70 per barrel, after the United States and Iran agreed to a two-week ceasefire, easing fears of prolonged supply disruptions in the global energy market.
Bloomberg reported that the sharp decline followed expectations that the temporary truce would halt ongoing military actions and pave the way for the reopening of the Strait of Hormuz, a key transit route for global oil shipments.
The move is seen as a significant relief for markets that had priced in heightened geopolitical risks, with analysts expecting oil prices to remain volatile in the near term as developments around the ceasefire and supply flows continue to unfold.
