Oil prices hit their lowest in two weeks today as a freshly announced Iran-Israel ceasefire began to allay investor concerns over supply and shipping disruptions in the oil-rich Middle East.
Brent crude oil, seen as a global benchmark of prices, has dropped 4.95%, sitting back under $68 a barrel having been $77-78 for much of Monday and as high as high as $80 over the weekend.
Brent crude futures were down $3.82, or 5.3%, at $67.66 a barrel at 06:45 GMT. WTI crude fell $3.75, or 5.5%, to $64.76 per barrel.
The drop back to March price levels is a notable falloff, not just in actual price but in fears of further escalation, with some analysts estimating this week that oil prices could have soared beyond $100 in the event of Iran partially or temporarily closing off the Strait of Hormuz.
Oil prices had added roughly 10% over the mid-June start of Iran-Israel hostilities that were exacerbated in recent days by U.S.′ direct military involvement and Iran’s retaliatory strike against an American base in Qatar.
At the same time, gas prices in Europe fell by 12% after a ceasefire was announced between Israel and Iran.
The gas price per megawatt-hour for July futures contract on the TTF opened at 36.4 euro per megawatt-hour today, marking a 10.1% drop from yesterday's close of 40.5 euro.
As prices continued to decline, they settled at 35.8 euro at 9 a.m. local time, trading 12% below yesterday's closing.
European gas prices have been volatile over the past two weeks, rising to 41.9 euro per megawatt-hour on June 19 - the highest since early April - amid concerns that escalating conflict could lead to the closure of the Strait of Hormuz and disrupt global LNG trade.
