Global oil prices fell significantly to around $94 per barrel after the United States and Iran agreed to a temporary ceasefire, easing tensions that had disrupted energy supply routes.
Gatekeepers News reports that Brent crude dropped by about 13% to roughly $94.76 per barrel, while U.S. West Texas Intermediate (WTI) also declined sharply to about $96 per barrel.
The drop followed an announcement by U.S. President Donald Trump that both countries had agreed to suspend hostilities for two weeks. The agreement includes reopening the Strait of Hormuz, a key global oil transit route that had been heavily disrupted during the conflict.
The ceasefire immediately calmed global markets. Oil prices, which had surged above $100 per barrel due to fears of supply shortages, dropped by roughly 13–17% in a single day—one of the steepest declines since 2020.
Analysts say the fall reflects renewed confidence that oil supply will stabilise as shipping resumes through the Gulf. However, uncertainty remains over how long the ceasefire will last and whether a broader peace agreement can be reached.
Despite the sharp drop, prices are still higher than pre-conflict levels due to lingering damage to energy infrastructure and ongoing geopolitical risks.
