Oil prices plunge after US-Iran ceasefire

Islamabad (Web Desk): Hopes of easing tensions in the Middle East have triggered a sharp decline in global crude oil prices, following the announcement of a two-week conditional ceasefire between the United States and Iran.

According to international reports, prices of Brent crude oil dropped by nearly 16 percent, bringing it down to around $94 per barrel.

Meanwhile, West Texas Intermediate (WTI) crude oil also recorded a decline and is currently trading at about $95 per barrel.

In recent weeks, oil prices had surged after warnings from Iran about potential disruptions to shipping routes passing through the Strait of Hormuz, raising fears of supply shortages in the global market.

The ceasefire announcement has temporarily eased those concerns and brought some stability to the energy market.

However, market analysts caution that despite the recent drop, oil prices remain higher than pre-conflict levels.

Experts say that if the temporary ceasefire evolves into a lasting peace agreement, global oil prices could decline further; otherwise, renewed tensions may once again disrupt supply and push prices upward.