SINGAPORE: Oil prices hit their lowest in two weeks on Tuesday after Israel agreed to US President Donald Trump’s proposal for a ceasefire with Iran, alleviating worries of supply disruptions in the Middle East — a major oil-producing region.
Brent crude futures were down $2.42, or 3.39 percent, at $69.06 a barrel at 12:20 p.m. Saudi time. US West Texas Intermediate crude fell $2.32, or 3.39 percent, to $66.19 per barrel.
Israel has agreed to Trump’s proposal for a ceasefire with Iran after it achieved its goal of removing Tehran’s nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu said in a statement posted by his office on Tuesday.
Trump had announced on Monday that Israel and Iran have fully agreed to a ceasefire, adding that Iran will begin the ceasefire immediately, followed by Israel after 12 hours. If both sides maintain peace, the war will officially end after 24 hours, concluding a 12-day conflict.
“If the ceasefire is followed as announced, investors might expect the return to normalcy in oil,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
