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Oil prices plunge after US-Iran ceasefire announcement

Economy & businessEconomy
Key Points
  • Oil prices dropped from $110 to around $90 per barrel in less than a day.
  • The decline followed a two-week ceasefire announcement between the US and Iran.
  • The market remains unstable due to infrastructure damage and conflict risks.

Oil prices fell sharply after the announcement of a two-week ceasefire between the US and Iran. In less than a day, the price of North Sea oil dropped from $110 to around $90 per barrel. Before the war began on February 28, the oil cost about $70 per barrel.

Damage to oil-critical infrastructure and the risk of new conflicts mean the market is far from stable, which continues to affect fuel prices. According to Christian Kopfer, a commodity analyst at Arctic Securities, the oil market has no chance of normalizing on a two-week ceasefire.

the oil market has no chance of normalizing on a two-week ceasefire

Christian Kopfer, commodity analyst at Arctic Securities

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