Oil Prices Plunge After Iran-US Ceasefire Agreement

The price of West Texas Intermediate (WTI) crude oil plummeted by up to 18% following announcements of a two-week ceasefire and the start of negotiations between Iran and the US in Pakistan.

Shortly before the opening of Asian markets, the price per barrel fell by 6.93% to $105.12. The decline then intensified, with WTI reaching $93.03, a 17.64% drop. Brent Crude North Sea also fell by 15.03% to $92.85.

Tokyo's Nikkei index rose by 4%, while Seoul's Kospi increased by 5.94%. Energy markets are closely monitoring geopolitical developments in the Middle East.

The drop is attributed to expectations that the ceasefire will reduce the risk of disruptions to the global oil supply.