Trump's ceasefire announcement impacts oil prices

Oil prices, which had climbed to a five-month high due to the risk of war in the Middle East, fell sharply following US President Donald Trump's announcement of a ceasefire between Israel and Iran. His announcement, made via social media on Monday evening, had an immediate impact on the market.

The rising tension following Israel's attacks on Iran had pushed Brent crude oil prices to levels not seen in a long time. With the escalation of tensions into hot conflict, both Brent crude and US crude oil had surged.

However, Trump's latest statement caused a shift in market direction.

TRUMP: “CEASEFIRE IS FULL AND COMPREHENSIVE”

In a statement on his social media account Truth Social on Monday evening, Donald Trump announced that an agreement had been reached on a “full and comprehensive ceasefire” between Israel and Iran. In his statement, he shared a timeline for the end of the war and noted the following:

“If everything works as it should – and it will – I would like to congratulate Israel and Iran for the fortitude, courage, and intelligence they have shown in ending this ‘12-DAY WAR’.”

These statements by Trump triggered an immediate price reaction in the global oil market.

OIL PRICES FELL BY 4 PERCENT

Following Trump's announcement, US crude oil fell by 4% to $66 per barrel. Brent crude lost more than 3% of its value, dropping to around $68.40 in the morning hours.

News Source: 12punto