Oil prices plunged more than 15 per cent in early trading on Wednesday, pushing both major benchmarks below 100 dollars a barrel, as signs of de-escalation in the Middle East eased market concerns.
The move followed a series of political signals pointing to a potential easing of tensions. US President Donald Trump said he would extend his ultimatum to Iran, while Tehran indicated it was open to negotiations. Pakistan’s Prime Minister Shehbaz Sharif also announced that a ceasefire would take effect across the region “with immediate effect”.
By 03:15 Cyprus time, US benchmark West Texas Intermediate (WTI) had dropped 15.40 per cent to 99.55 dollars per barrel. Brent crude, the international benchmark, fell 15.03 per cent to 92.85 dollars per barrel.
The sharp decline reflects growing investor optimism that a broader ceasefire involving Iran could take hold, after more than five weeks of conflict in the region.
Asian equity markets rallied on the news. Tokyo’s Nikkei gained around 4 per cent, while Seoul’s Kospi surged 5.94 per cent, supported by lower energy prices and improved risk appetite.
Source: CNA