Oil Prices Plunge Over 5 % As Israel Accepts U.S.‑Brokered Ceasefire Proposal With Iran

Global oil prices dropped by over 5% on Tuesday, June 24, after Israel confirmed its acceptance of a bilateral ceasefire proposal brokered by U.S. President Donald Trump, signaling a possible end to nearly two weeks of heightened tensions with Iran.

The steep fall in crude prices reflected reduced investor anxiety over potential long-term disruptions to the energy market. The recent conflict had sparked fears about supply interruptions, especially through the vital Strait of Hormuz — a key global oil transit route.

As of 06:50 GMT, Brent crude had declined by 5.2%, trading at $67.75 per barrel, while U.S. benchmark West Texas Intermediate (WTI) fell by 5.4% to $65.01 per barrel.

“The potential end to the conflict has been welcomed by market participants,” said Lee Hardman, currency analyst at MUFG. “Brent has now almost fully reversed all of the gains since the conflict began.”

Currency markets also reacted to the easing tensions, with the U.S. dollar weakening slightly after a period of strength driven by heightened geopolitical risk. “If Middle East tensions now fade as a driver, we’re likely to see the dollar’s weakening trend resume,” Hardman added.