Oil Plunges After U.S.-Iran Ceasefire Deal

Global oil prices fell sharply and stock markets rallied after the U.S. and Iran agreed to a conditional two-week ceasefire that includes reopening the Strait of Hormuz, as reported by Osmond Chia and Peter Hoskins for BBC News.

Oil prices fall as markets react to easing tensions between the U.S. and Iran.

Benchmark Brent crude dropped about 13% to $94.80 per barrel, while U.S. crude fell more than 15% to $95.75. Despite the decline, prices remain above pre-conflict levels of roughly $70 per barrel in late February.

Markets reacted positively across the Asia-Pacific region.

Japan’s Nikkei 225 rose 5%, South Korea’s KOSPI jumped nearly 6%, and Hong Kong’s Hang Seng Index gained 2.8%. Australia’s S&P/ASX 200 also climbed 2.7%, while U.S. futures signaled a strong open.