International oil prices tumbled by over 4% on Tuesday.
After a sharp 7.2% decline the previous day, oil prices fell again by nearly 4.7%.
The market’s supply concerns eased as Iran’s pre-warned strikes on U.S. military bases in Qatar and Iraq resulted in no casualties, signaling a potential de-escalation of the conflict.
Following market close, U.S. President Donald Trump announced a ceasefire agreement between Israel and Iran, triggering another drop in oil prices on Tuesday.
The two-day plunge pushed international oil prices below levels seen before Israel’s surprise attack on Iran on June 13, which had initially sparked a surge in prices.
Brent crude, the global oil benchmark, fell 3.33 USD (4.66%) to 68.15 USD per barrel for August delivery.
Similarly, West Texas Intermediate (WTI), the U.S. oil benchmark, saw its August contract drop 3.18 USD (4.64%) to 65.33 USD per barrel.
These prices are now lower than those recorded on June 12, prior to Israel’s attack on Iran.
On June 12, Brent closed at 69.36 USD per barrel, while WTI ended at 68.04 USD.
Trump emphasized that supply concerns have completely dissipated with the ceasefire and the suspension of secondary sanctions on Iranian oil.
In a post on his social media platform, Truth Social, Trump stated that China has now resumed purchasing oil from Iran. He added that he hoped China would buy a lot from the U.S. and that he was honored to make this happen.
With his comments on Tuesday, Trump implied that the secondary sanctions introduced last month, which penalize countries that import Iranian oil, are no longer in effect.
Previously, he had warned of business repercussions with the U.S. for countries purchasing Iranian oil, aiming to pressure Iran to the negotiating table by targeting its main source of foreign currency.
This strategy was seen as being primarily directed at China.
According to market research firm Kpler, China typically imports about 1.7 million barrels of Iranian oil daily.
