Prices for "black gold" sank below $100 per barrel after US leader Donald Trump announced the achievement of a two-week truce with Iran.
Points of attention
- Despite the substantial decline, current oil prices remain higher than pre-ceasefire levels, with Brent still significantly above $73 per barrel recorded earlier.
- The ceasefire in the Middle East has created uncertainty in the oil market, prompting analysts to closely monitor the situation for further developments and their impact.
What is happening to oil prices?
Analysts point out that crude oil prices have fallen sharply below $100 per barrel.
This came just after President Donald Trump announced that the US had agreed to a two-week ceasefire with Iran.
What is important to understand is that this is the largest one-day drop in oil prices since the Gulf War — that is, in the last 35 years.
Thus, the global benchmark, Brent crude futures, has fallen by about 16% to around $93 per barrel. At the same time, this is still significantly higher than the level of around $73 per barrel recorded before the war began in late February.
In addition, it is noted that WTI — the American benchmark — fell to approximately $96 per barrel — a drop of 14%.
