Global Oil Prices Plummet Following Middle East De-escalation

Kathmandu. Crude oil prices have seen a sharp decline in the international market following positive signs of easing tensions in West Asia.

The market reacted immediately after a surprise ceasefire agreement between Israel and Lebanon, coupled with Iran's announcement to keep the vital Strait of Hormuz trade route open.

As of the time of reporting, global oil prices have dropped by double-digit percentages.

According to the latest market data, Brent crude prices fell by 11.72 percent, or $11.65, settling at $87.75 per barrel. The price, which had been above $98 earlier in the day, experienced a sudden collapse.

Similarly, the U.S. benchmark West Texas Intermediate (WTI) crude oil saw a significant decline of 12.82 percent, or $12.14, bringing the price down to $82.55 per barrel.

Oil prices had previously surged due to fears that the prolonged conflict between Israel and Hezbollah in Lebanon would disrupt the Middle East's oil supply chain. However, the unexpected ceasefire has provided major relief to the market.

Following this agreement, Iran announced that it would keep the Strait of Hormuz—a key route through which approximately 20 percent of the world's crude oil is traded—safely open, boosting investor confidence regarding supply stability.