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The price of Brent crude oil fell below $70 per barrel on Monday for the first time since the beginning of clashes between Israel and Iran, after U.S. President Donald Trump announced a cease-fire that he expects to last “forever.”
At the time of writing, Brent was trading at $69.4 per barrel, down 9.8%. The price stood at around $65 in early June and climbed to $77 during last week’s clashes, marking its highest level since January.
WTI crude also dropped sharply, falling over 10% to $66.37 per barrel.
Meanwhile, the euro gained ground against the U.S. dollar, with the EUR/USD exchange rate surpassing 1.161. This strength was also reflected against the Turkish lira, as the euro hit a new all-time high of 46.10.
Spot gold prices, which had surged past the $3,400 mark during the escalation, began to retreat as profit-taking sell-offs emerged in Asian markets. Prices declined by over 1%, falling to $3,330.
Iran retaliated on Monday following U.S. strikes over the weekend on three of its nuclear sites. Although the attacks caused no casualties, oil prices dropped by approximately 8.6% as of 9 a.m. GMT. In response, Iran launched a missile attack on Al Udeid Air Base in Qatar, the largest American military base in the Middle East.
Shortly after, in the early hours of Tuesday, U.S. President Donald Trump announced via Truth Social that Iran and Israel had agreed to a ceasefire. “It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE,” Trump wrote, adding that Iran initiated the truce, followed by Israel 12 hours later.
“I think the ceasefire is unlimited. It’s going to go forever," Trump said in a phone interview, according to NBC.
Several hours later, Trump posted again on Truth Social, urging both sides not to violate the cease-fire.
Hostilities began on June 13 when Israel launched airstrikes on multiple targets across Iran, including military and nuclear facilities, prompting retaliatory strikes from Tehran.
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