Oil Prices Fall Sharply After Ceasefire Between Iran and Israel, Brent Crude Hits 7-Week Low

Islamabad (Qudrat Daily) – Global oil prices witnessed a significant decline following a ceasefire between Iran and Israel, reportedly facilitated at the request of U.S. President Donald Trump.

According to international media reports, Brent crude oil dropped by nearly 4% to $90.85 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 4.1% to $87.59 per barrel.

This marks the lowest level for Brent crude since April 17, while WTI has reached its weakest level since May 29, reflecting easing geopolitical tensions in global energy markets.

Market analysts say the decline comes after fears of supply disruptions eased, particularly following concerns over potential closures in the Strait of Hormuz, which had previously pushed prices to their highest levels since the COVID-19 era.

With the restoration of ceasefire and renewed diplomatic engagement between Washington and Tehran, the risk premium in oil markets has begun to decline.

President Donald Trump has claimed that a lasting ceasefire and the reopening of key shipping routes could push oil prices even lower in the coming weeks.

However, uncertainty remains in the market after Trump also alleged that Iran shot down a U.S. Apache helicopter and warned of possible retaliatory action, which has kept some geopolitical risk factors in play.

Despite this, analysts believe the likelihood of immediate large-scale military escalation remains limited, allowing the downward trend in oil prices to dominate market sentiment for now.