Oil prices tumbled sharply Tuesday after Israel agreed to a United States-brokered ceasefire with Iran, easing fears of prolonged Middle East conflict.
Brent crude fell 5.0 per cent to $67.93 per barrel, while U.S. benchmark WTI dropped 5.1 per cent to $65.01 by 0640 GMT.
The price collapse followed U.S. President Donald Trump’s announcement that both nations had accepted a phased truce beginning at 0400 GMT Tuesday.
“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!” Trump declared on Truth Social. The agreement stipulated Iran would halt operations first, with Israel following 12 hours later.
However, neither Tehran nor Jerusalem officially confirmed the deal when announced. Just hours earlier, Iranian Foreign Minister Abbas Araghchi had stated “as of now, there is NO ‘agreement’ on ceasefire or cessation of military operations,” while suggesting Iran would stop retaliating if Israel ended attacks by the deadline.
The tentative truce came after escalating violence that killed over 400 in Iran and 24 in Israel since June 13. Moments before the ceasefire deadline, Iranian state media reported missile launches toward northern Israel, where sirens sounded. Israeli rescuers confirmed four fatalities from strikes in Beersheba.
Meanwhile, AFP journalists described powerful overnight explosions in Tehran – among the strongest since hostilities began. The conflict had sparked global alarm, with French President Emmanuel Macron warning “the spiral of chaos must end” and China expressing economic concerns.
The breakthrough followed Iran’s Monday missile strike on Qatar’s Al Udeid Air Base – the largest U.S. military facility in the region. Tehran called it a proportional response to U.S. attacks on Iranian nuclear sites, with its National Security Council noting the missile count matched “the number of bombs that the US had used.”
Analyst Ali Vaez described Iran’s measured retaliation as “calibrated and telegraphed in a way that would not result in any American casualties, so that there is an off ramp for both sides.” Qatar temporarily closed its airspace during the attack, which triggered celebrations in Tehran where crowds chanted “Death to America.”
The conflict began with Israel’s June 13 preemptive strikes on Iranian nuclear facilities, prompting Trump to warn of potential regional war. While the ceasefire offers temporary relief, tensions remain high with neither side claiming full victory.
