Global oil prices fell sharply and stock markets rallied after the United States and Iran agreed to a conditional two-week ceasefire, including the reopening of the key Strait of Hormuz.
Benchmark Brent crude dropped about 15.9% to $92.30 per barrel, while US-traded oil declined nearly 16.5% to $93.80, reflecting easing concerns over supply disruptions.
The sharp fall follows the announcement that Iran would allow safe passage through the Strait of Hormuz if attacks against the country are halted, as part of the temporary ceasefire agreement.
Despite the decline, oil prices remain significantly higher than before tensions escalated on February 28, when crude was trading at around $70 per barrel. (Newswire)