Oil prices fall to over one-week lows as Trump announces Israel-Iran ceasefire
Oil prices tumbled on Tuesday to their lowest level in more than a week as U.S. President Donald Trump said a ceasefire has been agreed between Iran and Israel, relieving worries of supply disruption in the area.
Brent crude futures fell $2.69 or 3.76% to $68.79 a barrel as of 0006 GMT, after falling more than 4% earlier in the session and touching its lowest level since June 11.
U.S. West Texas Intermediate crude slumped $2.7, or 3.94%, to $65.46 per barrel, having hit its weakest level since June 9 earlier in the session and falling around 6%.
Trump announced on Monday that Israel and Iran have fully agreed to a ceasefire, adding that Iran will begin the ceasefire immediately, followed by Israel after 12 hours. If both sides maintain peace, the war will officially end after 24 hours, concluding a 12-day conflict.
He said that a "complete and total" ceasefire will go into force with a view to ending the conflict between the two nations.
"With the ceasefire news we are now seeing a continuation of the risk premium built into crude oil price last week all but evaporate," said Tony Sycamore, analyst at IG.
Iran is OPEC's third-largest crude producer, and the easing of tensions would allow it to export more oil and prevent supply disruptions, a major factor in oil prices jumping in recent days.
Both the oil contracts settled over 7% lower in the previous session after rallying to five-month-highs after the U.S. attacked Iran's nuclear facilities over the weekend, stoking fears of a broadening in the Israel-Iran conflict.
"Technically, the overnight sell-off reinforces a layer of resistance between approximately $78.40 (October 2024 and June 2025 highs) and $80.77 (the year-to-date high), and it's clear that it will take something extremely unexpected and detrimental to supply for crude oil to break through this layer of resistance," Sycamore added.
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The Hill
22 minutes ago
- The Hill
Israel and Iran accept ceasefire
BEERSHEBA, Israel (AP) — Israel and Iran on Tuesday accepted a ceasefire plan proposed by U.S. President Donald Trump to end their 12-day war that roiled the Middle East, after Tehran launched a retaliatory limited missile attack on a U.S. military base in Qatar. The acceptance of the deal by both sides came after Tehran launched a final onslaught of missiles targeting Israel that killed at least five people early Tuesday morning, while Israel launched a blitz of airstrikes targeting sites across Iran before dawn. Prime Minister Benjamin Netanyahu said Israel had agreed to a bilateral ceasefire with Iran in coordination with Trump. Netanyahu said that he had reported to Israel's security cabinet Monday night that Israel had achieved all of its war goals in the 12-day operation against Iran, including removing the threat of Iran's nuclear and ballistic missile programs. Israel also damaged Iran's military leadership and several government sites and achieved control over Tehran's skies, Netanyahu said. 'Israel will respond forcefully to any violation of the ceasefire,' Netanyahu said. Heavy Israeli strikes continued in Iranian cities until shortly before 4 a.m., followed by Iranian barrages that sent Israelis hurrying into bomb shelters as the sun rose, killing at least five people and injuring eight others, Israel's Magen David Adom rescue services said. Writing over an hour after a deadline passed for Iran to halt its attacks, Trump wrote on Truth Social: 'THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT! DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES!' Iranian state television reported that the ceasefire went into effect at 7:30 a.m., but Iranian officials have not commented since Trump's announcement. Hours earlier Iran's top diplomat said the country was prepared to halt airstrikes. 'As of now, there is NO 'agreement' on any ceasefire or cessation of military operations,' Iranian Foreign Minister Abbas Araghchi wrote in a post on X. 'However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards.' Araghchi added: 'The final decision on the cessation of our military operations will be made later.' Iran's barrage damaged at least three densely packed residential buildings in the city of Beersheba, police said. First responders said they retrieved five bodies from one building and were searching for more. At least 20 people were injured. Outside, the shells of burned out cars littered the streets. Broken glass and rubble covered the area. Hundreds of emergency workers gathered to search for anyone else trapped in the buildings. Police said some people were injured even while inside their apartments' reinforced safe rooms, which are meant to withstand rockets and shrapnel but not direct hits from ballistic missiles. The direct hit in the largest city in southern Israel came before Trump said the ceasefire had gone into effect. Trump's announcement that Israel and Iran had agreed to a 'complete and total ceasefire' came soon after Iran launched a limited missile attack Monday on a U.S. military base in Qatar, retaliating for the American bombing of its nuclear sites. The U.S. was warned by Iran in advance, and there were no casualties. Trump's announcement on Truth Social said the ceasefire beginning about midnight Washington time would bring an 'Official END' to the war. Trump gave the conflict between Israel and Iran a name: the '12 Day War.' That recalls the 1967 Mideast war, known by some as the 'Six Day War,' in which Israel fought a group of Arab countries including Egypt, Jordan and Syria. Trump's reference carries emotional weight for the Arab world, particularly Palestinians. In the 1967 war, Israel captured the West Bank and east Jerusalem from Jordan, the Gaza Strip and the Sinai Peninsula from Egypt, and the Golan Heights from Syria. Though Israel later gave the Sinai back to Egypt, it still holds the other territories. Trump communicated directly with Israeli Prime Minister Benjamin Netanyahu to secure the ceasefire, according to a senior White House official who insisted on anonymity to discuss the Monday talks. Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff communicated with the Iranians through direct and indirect channels. The White House has maintained that the Saturday bombing helped get the Israelis to agree to the ceasefire and that the Qatari government helped to broker the deal. It's unclear what role Ayatollah Ali Khamenei, Iran's leader, played in the talks. He said earlier on social media that he would not surrender. Israel's Airports Authority said Iran's barrage forced them to close the country's airspace to emergency flights for several hours. Some flights were forced to circle over the Mediterranean Sea, according to Israeli media. Israel's airports have been closed since the war with Iran began, but a handful of emergency flights started arriving and departing over the past few days. By early Tuesday, Qatar Airways resumed its flights after Qatar shut down its airspace over the Iranian attack on Al Udeid Air Base. Flight-tracking data showed commercial aircraft again flying in Qatari airspace, signaling Doha believed the threat on the energy-rich nation had passed. In Israel, at least 29 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists. The group, which has provided detailed casualty figures from Iranian unrest such as the protests surrounding the death of Mahsa Amini in 2022, said of those killed, it identified 387 civilians and 268 security force personnel. The U.S. has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said. There are roughly 700,000 American citizens, most of them dual U.S.-Israeli citizens, believed to be in Israel. ___ Gambrell reported from Dubai, United Arab Emirates, and Lidman reported from Tel Aviv, Israel. Associated Press writers Josef Federman in Jerusalem, Qassim Abdul-Zahra in Baghdad, Abby Sewell in Beirut, Elise Morton in London, Geir Moulson in Berlin, Ella Joyner in Brussels, Edith M. Lederer at the United Nations and Stephanie Liechtenstein in Vienna contributed to this report.
Bloomberg
22 minutes ago
- Bloomberg
Israel's Markets Rally After Ceasefire Agreed With Iran
Israel's stocks, currency and bonds posted some of the biggest gains in emerging markets after the nation confirmed it has agreed a ceasefire with Iran.
Yahoo
33 minutes ago
- Yahoo
UK welcomes ceasefire in Israel Iran conflict as 'fragile situation' remains
The UK has welcomed news of a ceasefire between Iran and Israel, as both sides announced they had agreed to stop fighting. Israel's government confirmed on Tuesday morning it had agreed to the ceasefire plan, proposed by US President Donald Trump. Mr Trump first claimed an agreement had been reached overnight, but both Israel and Iran were initially silent. Israel's Prime Minister Benjamin Netanyahu said his nation had agreed to the bilateral ceasefire in co-ordination with Tehran. It followed a final onslaught of missiles targeting Israel early on Tuesday, which killed at least four people. Israel in turn launched a blitz of airstrikes targeting sites across Iran before dawn. Mr Netanyahu reasoned to his security cabinet that Israel had achieved all its goals in its 12-day war against Iran, including removing the threat of its nuclear programme. 'Israel will respond forcefully to any violation of the ceasefire,' the Israeli prime minister warned. Speaking on BBC Breakfast after news of Israel's agreement to the deal broke, Cabinet Office minister Pat McFadden said it was 'good news, if the ceasefire holds'. He also told the BBC: 'I welcome the Israeli statement. It's obviously a fragile situation in the Middle East. 'A number of people have been killed overnight in missile strikes, but I think the whole world will hope that the ceasefire will hold and that Iran will come forward with a credible plan that shows that it will not pursue the development of a nuclear weapon.'
