By Atoyebi Nike
Global crude oil prices fell sharply on Tuesday, dropping more than 3% following the announcement of a US-brokered ceasefire agreement between Israel and Iran, signaling a potential end to nearly two weeks of military confrontation in the Middle East.
As of 11:30 a.m. local time, Brent Crude traded at $69.11 per barrel, while West Texas Intermediate (WTI) dropped to $66.55, both slipping below the psychological $70 mark.
The decline came as geopolitical tensions eased after US B-2 bombers struck Iranian nuclear facilities at Fordow, Natanz, and Esfahan, prompting a strategic recalibration. The ceasefire, announced by US President Donald Trump, was confirmed by Israeli Prime Minister Benjamin Netanyahu, who declared that the operation had achieved its military objectives, including neutralizing Iran’s nuclear and missile threats.
“Israel has achieved all the objectives of Operation Rising Lion and even more,” Netanyahu said. “In full coordination with President Trump, Israel has accepted the ceasefire proposal.”
The truce, if maintained, would conclude a 12-day conflict marked by heightened fears of oil supply disruptions, which initially sent prices surging. However, throughout the escalation, key energy infrastructure and trade routes particularly the Strait of Hormuz remained largely unaffected, easing concerns over supply shocks.
Still, tensions briefly flared again following Israeli claims that Iran violated the ceasefire by launching a ballistic missile at northern Israel. The Iranian military denied the accusation, calling the reports “false.”
Despite the uncertainty, market sentiment remained bearish, with analysts pointing to oversupply risks. An assessment by Advisors Reports noted that a surplus in the second half of the year could drive global oil inventories higher, applying further pressure on prices.
Unless global demand picks up meaningfully, experts warn that crude prices may continue to hover at lower levels.
