(Enmaeya News) — Global oil prices fell significantly Tuesday following the announcement of a ceasefire between Israel and Iran. The move eased fears of supply disruptions in the Middle East, a region critical to the global oil market.

Brent crude, the international benchmark, declined about 5.3% to $67.66 per barrel, hitting its lowest level in over a week. West Texas Intermediate (WTI), the U.S. benchmark, dropped 5.5% to $64.76 per barrel. These declines erased recent gains and pushed prices below pre-conflict levels. The September Brent contract fell to $68.65 per barrel, marking a 15% decrease from Monday’s peak.

The ceasefire ended 12 days of conflict that had raised concerns over oil supply stability. While markets welcomed the development, some analysts remain cautious, noting the situation could still impact prices if tensions flare again.

Investor sentiment shifted quickly following the news, with capital moving from oil futures into equities. Asian stock markets climbed, reflecting growing confidence in broader economic stability. Meanwhile, the U.S. dollar weakened slightly, supporting risk appetite.

Despite the recent price drop offering some relief to inflation pressures, analysts warn that any renewed instability in the Middle East could trigger volatility in energy markets. Market watchers continue to monitor developments closely as the situation evolves.