Oil prices fell sharply after the United States and Iran reached a two-week ceasefire agreement, easing tensions in the Gulf region. The deal requires Iran to reopen the Strait of Hormuz, a critical transit route for global oil supplies.
Brent crude dropped by 13 percent to settle at 95 dollars per barrel, while West Texas Intermediate (WTI) fell 14 percent to 96 dollars per barrel. This marks the steepest one-day decline in oil prices since the 1991 Gulf War.
The sharp fall in crude prices has brought relief to global markets, reducing inflationary concerns and boosting investor sentiment. In India, the decline is expected to ease the import bill and potentially lower fuel costs for consumers.
Analysts caution that the relief may be temporary, as the ceasefire is short-term and conditional. Any renewed escalation in the region could quickly reverse the downward trend in oil prices.
