Hi Bandung – World oil prices experienced a sharp decline of up to 13–17 percent after the announcement of a temporary ceasefire between the United States and Iran.
Trade data on Wednesday morning showed that the deal had an immediate impact on global energy markets.
On Tuesday (7/4) evening, United States President Donald Trump stated that he had agreed to a bilateral ceasefire with Iran that would last for two weeks.
Apart from that, Iran is also said to be committed to maintaining the security of shipping lanes in the Strait of Hormuz, which has been one of the crucial points for world oil distribution.
This agreement provided positive sentiment for the market, thereby triggering a decline in oil prices which had previously experienced pressure due to geopolitical tensions in the Middle East region.
Brent and WTI Prices Drop Sharply
At 00.17 local time, the price of Brent crude oil for the June contract was recorded to have fallen by around 12.6 percent to 91.92 US dollars per barrel, or around IDR 1.56 million.
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