Oil prices continue to fall following the ceasefire announcement made by U.S. President Donald Trump, who confirmed that both Tehran and Tel Aviv have accepted the proposal.
Brent crude, the benchmark for Angolan exports, dropped 4% to $68.62 per barrel. Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, fell by 4.07% to $65.72 per barrel.
“Investors are now clearly convinced that the risk of a supply shock is in the rearview mirror,” said Chris Weston, head of research at Pepperstone Group, quoted by Bloomberg. “The prospect of a prolonged conflict involving the United States has been reassessed, giving the green light to take on more risk,” he added.
Initially spurred by fears — raised by the Iranian parliament — that the Strait of Hormuz might be closed (a scenario that ultimately did not materialize), oil prices opened higher yesterday. However, the upward momentum weakened throughout the day, marked by fluctuations, due to the lack of a strong response from Iran.
Even the Iranian attack on military bases in Qatar was downplayed by the United States, with Trump thanking Iran for the advance warning about the “very weak” strike. The ceasefire “is already in effect,” he added moments ago, noting that the truce has been accepted by Israel and, according to Reuters, also by Iran.
Source: E&M
