Oil reacts to Trump’s ceasefire announcement
Oil prices have moved lower after US President Donald Trump announced that a ceasefire between Israel and Iran was in place and urged both countries to uphold it.
IMAGE: Getty Images
The announcement comes hours after Iran’s latest attack on the Al-Udeid base of the US in Qatar's capital city, Doha.
The news has dragged oil prices lower, as earlier market expectations had factored in a potential escalation of the Middle East conflict, including the risk of Iran shutting the Strait of Hormuz, a key route for around 20% of global oil flows.
Brent crude is down by $3.73/bbl from an intraday high of $72.93/bbl at 07.50 GMT yesterday. “Crude’s decline was cautious,” VANDA Insights’ founder and analyst Vandana Hari noted.
Israel has agreed to the proposal after successfully removing Tehran's nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu's office said in a statement. Meanwhile, Iran has not agreed to Trump’s ceasefire announcement.
Over the weekend, the US and Israel had launched attacks on key Iranian nuclear facilities. Tehran subsequently retaliated with attacks on US bases and Israeli territories.
By Aparupa Mazumder
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