In a development that directly reflects developments related to the ceasefire with Iran, oil prices witnessed a significant decline, considered among the largest they have witnessed over the course of one day since the outbreak of the “Covid-19” pandemic, amid a noticeable decline in global markets.
The price of Brent crude fell by 13% to reach $94.75 per barrel, recording the largest daily decline since the spring of 2020. This decline is considered the seventh largest in the history of trading, according to Dow Jones data.
US oil futures recorded a greater decline, falling by 16% to settle at $94.41 per barrel, which is the largest decline witnessed since the beginning of the Corona pandemic.
As for diesel contracts, they have not witnessed a decline of this magnitude since the early stages of the war in Ukraine in 2022, which shows the magnitude of the impact that the calm has had on market expectations.
This sharp decline demonstrates the sensitivity of the energy market to any geopolitical developments occurring in the region, as the announcement of a ceasefire reduced concerns about supply disruption, which was immediately reflected in prices.
This rapid decline reflects a shift in market trends, from a state of concern about escalation to betting on stability, even temporarily, in one of the regions most influential on the global oil market.
