Global oil prices fell sharply on Tuesday after a ceasefire agreement between Iran and Israel was announced in the early hours of the day.
Brent crude dropped $2.08, or 2.9 percent, to $69.40 a barrel by 0330 GMT, after falling more than 4 percent earlier in the session to its lowest level since June 11, Reuters reported. US West Texas Intermediate (WTI) crude declined $2.03, or 3.0 percent, to $66.48 per barrel, having earlier slid 6 percent to a low not seen since June 9.
Trump stated late Monday that both Iran and Israel had fully agreed to a ceasefire. Iran would begin implementing it immediately, while Israel would follow after 12 hours. The war, which has lasted 12 days, will officially end after 24 hours if the truce holds.
The news reduced geopolitical risk premiums in the oil market.
The price drop followed a volatile period. Oil benchmarks had surged to five-month highs after a US strike on Iranian nuclear facilities over the weekend. Both Brent and WTI settled over 7 percent lower in the previous session as the ceasefire announcement shifted market sentiment.