Crude oil prices fell sharply Tuesday, returning to levels last seen before the Iran-Israel conflict, as investors cheered news of a U.S.-facilitated ceasefire between two Middle Eastern countries.
World capitals and major oil trades heaved a sigh of relief after U.S. President Donald Trump pressured Israel and Iran into agreeing on a ceasefire agreement before heading for a NATO summit. Crude oil prices
A major worry for traders and government leaders was the eventual closure of the strategic Strait of Hormuz in the event of war worsening on the edge of the key shipping route for world oil supplies. Iran has control over Strait of Hormuz which facilitates 20 percent of world oil commerce through tis waterway.
The latest reports said Brent crude, the global oil benchmark, was trading 5.8% lower on the day Tuesday afternoon at $66.44 a barrel. West Texas Intermediate crude, the US oil benchmark, was also trading 5.8% down at $64.50 a barrel.
The price levels are broadly comparable to the closing prices before Israel launched an attack on Iranian nuclear facilities on June 13.
The ceasefire effect was also visible on global stocks as the trading markets also experienced buoyancy after the announcement of ceasefire by U.S. President Donald Trump.
In the United States, major stocks were in the green. The Dow was trading more than 515 points, or 1.21%, higher by early afternoon. The S&P 500 was 1.12% higher, while the tech-heavy Nasdaq rose 1.5%.
The S&P 500 was trading less than 1% away from an all-time high. The Nasdaq was 1.3% away from an all-time high.
In Asia, stock indexes closed the day higher. Hong Kong’s Hang Seng finished up 2% and mainland China’s Shanghai Composite was 1.2% higher on the day.
Meanwhile, in Europe, the benchmark STOXX Europe 600 index, which includes UK-listed companies, closed higher by 1.11%.
In Pakistan stock market, buying spree returned to the) as investors rejoiced after US President Donald Trump said Iran and Israel had agreed to a ceasefire, with the benchmark KSE-100 Index settling with a gain of over 6,000 points.
Bullish momentum persisted throughout the trading session, pushing the KSE-100 Index to an intra-day high of 122,725.21.
At close, the benchmark index settled at 122,246.63 level, an increase of 6079.16 points or 5.23%.
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Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
