FX.co ★ Oil Falls After Trump Announces Israel-Iran Ceasefire

On Tuesday, West Texas Intermediate (WTI) crude oil futures fell over 1%, hovering around $66.2 per barrel. This marked the lowest price in nearly two weeks, following an announcement from U.S. President Donald Trump that Israel and Iran had agreed to a ceasefire, reducing concerns over potential supply disruptions in the Middle East. President Trump indicated that the ceasefire was expected to commence late Monday, with Iran ceasing its hostilities first, and Israel doing the same within the subsequent hours. Should both parties maintain their commitment to peace, the two-week conflict is scheduled to officially conclude after a 24-hour period. The declaration followed closely on the heels of Iran launching missiles at a U.S. military base in Qatar in retaliation for American strikes on its nuclear sites. The U.S. defense system successfully intercepted the missiles, resulting in no casualties, contributing to a more than 7% drop in oil prices on Monday. This de-escalation has lessened fears that Iran might attempt to obstruct the Strait of Hormuz, a key maritime passage responsible for approximately 20% of the world’s oil transport.