On one hand, Trump announced ceasefire between Iran and Israel, on the other hand, oil prices soared and crashed

News Topical, Digital Desk : Iran Israel Ceasefire: The ever-increasing price of crude oil had created a stir in the international world. Market experts had started expressing apprehensions that it would reach 110 to 120 dollars per barrel. But, as soon as US President Donald Trump announced a ceasefire between Iran and Israel, despite heavy tensions in the Middle East, the price of crude oil fell sharply. On the social media platform Truth Social, President Trump said that the ceasefire will come into effect in the next 12 hours and the conflict currently going on in the Gulf country will come to an end.

Confirming this, a senior Iranian official said that Tehran has agreed on a ceasefire with Israel. Israel's Channel 12 has reported that Prime Minister Benjamin Netanyahu gave his consent to the ceasefire agreement during talks with President Donald Trump. 

Oil prices fall after ceasefire

After the announcement of ceasefire, the price of crude oil fell sharply during the early trade in the Asian market on Monday. The price of West Texas Intermediate (WTI) August crude futures fell by 5.1 percent to $ 65.02 per barrel. This is the lowest since June 12. On the same day, Iran was attacked with a missile by Israel.

The price of Brent crude oil has already fallen by 8 percent after reports of no casualties in Iran's retaliatory attack on the US base in Qatar.

Trump announced ceasefire

President Donald Trump officially posted on Truth Social and wrote that it is time for peace now. Both the parties have completely agreed on ceasefire. It is worth noting that after the US attack on Iran's nuclear installations over the weekend, the price of Brent crude oil jumped to $ 81 per barrel on Monday. However, this increase was very limited. Oil producing countries did not make any reduction in its production nor did Iran, which threatened to close the Strait of Hormuz, take any such step.

In such a situation, despite the geopolitical tensions, the kind of surge in oil prices that market experts were expecting was not seen. One reason for this was that the group of oil producing countries OPEC+ had agreed that even if there is a disruption in the supply of oil from Iran, the rest of the member countries will continue to supply the global supply.

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