Oil Prices Plunge 10% After Iran-Israel Ceasefire
The announcement of a ceasefire after 12 days of intense fighting between Iran and Israel has caused an immediate reaction in global financial markets.
After this announcement, crude oil prices in the global market saw a sharp decline, which was the largest decline in recent months.
Significant decline in prices
The price of Brent crude oil in the global market has fallen by about 10% to $ 69 per barrel, while the price of WTI crude oil in the US market has decreased to $ 66 per barrel.
Analysis of financial analysts
According to analysts, the ceasefire has temporarily eliminated the risk of oil supply disruption in the Middle East, which has eliminated the ‘geopolitical risk premium’ in the market.
Impact on the market
Investors have reduced their purchases of oil futures, which has resulted in prices falling. Energy stocks also remained under pressure, while stock markets in oil-importing countries improved.
A sign of geopolitical stability
The international community, especially the United States, China, and the European Union, has welcomed the ceasefire. The decline in oil prices is also expected to have a positive impact on global inflation, which could prove beneficial for many economies.
Future forecast
According to experts, if the ceasefire remains permanent and there is no new military conflict, crude oil prices may stabilize further.
However, if tensions rise again or the ceasefire is violated, there is a possibility of a resurgence in prices.
