Oil prices fell to their lowest level in two weeks on Tuesday after Israel accepted U.S. President Donald Trump’s proposal for a ceasefire with Iran.
Brent crude prices dropped by $3.82, or 5.3%, to $67.66 per barrel as of 08:45 local time.
Meanwhile, U.S. West Texas Intermediate (WTI) crude fell by $3.75, or 5.5%, to $64.76 per barrel.
Israel agreed to Trump’s ceasefire proposal with Iran, Prime Minister Benjamin Netanyahu confirmed in a statement released by his office on Tuesday.
On Monday, Trump announced that Israel and Iran had fully agreed to a ceasefire, stating that Iran would initiate the ceasefire immediately, followed by Israel 12 hours later.
If both parties maintain peace, the war would officially end after 24 hours, putting a stop to the 12-day-long conflict.
Iran, the third-largest crude oil producer in OPEC, stands to benefit from the ceasefire, as it would allow the country to increase its oil exports and avoid supply disruptions—a key factor behind the recent rise in oil prices.
