Oil Prices Tumble After Trump Declares Ceasefire In ‘12-DAY War’ Between Iran-Israel

Brent crude prices were down 2.5% at $68.79 per barrel, while U.S. West Texas Intermediate crude prices were down 2.5% at $66.78 per barrel at 2.27 am GMT.

Oil prices slipped to their lowest levels in more than a week in Asia trading on Tuesday after U.S. President Donald Trump said that Iran and Israel have agreed to a ceasefire, easing concerns about supplies.

Benchmark crude prices had already fallen 7% on Monday after Iran attacked a U.S. military base in Qatar and chose not to cause disruptions to tanker movements at the crucial Strait of Hormuz.

Brent crude prices were down 2.5% at $68.79 per barrel, while U.S. West Texas Intermediate crude prices were down 2.5% at $66.78 per barrel at 2.27 am GMT.

Trump said the two countries have agreed to a "complete and total" deal on Monday, hours after thanking Tehran for prior information on its attack on the U.S. military base.

He said that Iran will initiate he ceasefire immediately, followed by Israel after 12 hours. If both countries maintain peace, the war will officially end after a day.

"On the assumption that everything works as it should, which it will, I would like to congratulate both Countries, Israel and Iran, on having the Stamina, Courage, and Intelligence to end, what should be called, 'THE 12 DAY WAR'," Trump wrote in a post on Truth Social.

The United States Oil Fund (USO) was down 3.2% in extended trading on Monday, while ProShares Ultra Bloomberg Crude Oil (UCO) fell 4.3%.

Iran transports about 3.3 million barrels of crude oil per day, and the ceasefire will enable it to continue oil exports, which account for a significant portion of the country’s revenue.

"With the ceasefire news, we are now seeing a continuation of the risk premium built into crude oil price last week all but evaporate," Tony Sycamore, analyst at IG, said, according to Reuters.

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