Markets rally as tensions ease
Global oil markets saw a dramatic drop on Wednesday, with oil prices fall exceeding 15% after the United States stepped back from its ultimatum against Iran.
The shift came as Tehran signalled readiness to negotiate, easing fears of a wider conflict and triggering a strong rally across Asian stock markets.
Brent and WTI drop sharply
By around 08:00 Cyprus time, the price of West Texas Intermediate (WTI) crude for May delivery had plunged by 14.53% to $96.54.
At the same time, Brent crude for June delivery, the global benchmark, dropped by 13.13% to $94.92 per barrel.
Both benchmarks fell below the symbolic $100 mark, reinforcing the scale of the oil prices fall amid improving geopolitical sentiment.
Outlook remains uncertain
Despite the relief rally, analysts warn that volatility could persist depending on the outcome of upcoming negotiations between Washington and Tehran.
While the drop in prices offers short-term relief to global markets, the situation remains fluid as geopolitical tensions continue to evolve.
Also read: US and Iran agree ceasefire; Strait of Hormuz to reopen
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