Berliner Boersenzeitung - Oil prices drop as Israel agrees to ceasefire proposal

EUR -
AED 4.293297
AFN 80.91457
ALL 97.787182
AMD 448.803483
ANG 2.093049
AOA 1072.008381
ARS 1473.86814
AUD 1.776114
AWG 2.107191
AZN 1.992006
BAM 1.954944
BBD 2.359867
BDT 142.117771
BGN 1.954944
BHD 0.440707
BIF 3482.375178
BMD 1.169038
BND 1.495545
BOB 8.093456
BRL 6.502078
BSD 1.168788
BTN 100.194128
BWP 15.604167
BYN 3.824825
BYR 22913.14706
BZD 2.347672
CAD 1.60129
CDF 3373.844424
CHF 0.930865
CLF 0.029161
CLP 1110.323824
CNY 8.380309
CNH 8.386416
COP 4691.84559
CRC 589.441902
CUC 1.169038
CUP 30.97951
CVE 110.21674
CZK 24.665189
DJF 208.128867
DKK 7.461795
DOP 70.379183
DZD 151.705573
EGP 57.855667
ERN 17.535572
ETB 161.021794
FJD 2.621276
FKP 0.865796
GBP 0.866082
GEL 3.16855
GGP 0.865796
GHS 12.162504
GIP 0.865796
GMD 83.586233
GNF 10119.194341
GTQ 8.978183
GYD 244.526047
HKD 9.177043
HNL 30.804608
HRK 7.533988
HTG 153.404781
HUF 399.682894
IDR 18972.787189
ILS 3.894359
IMP 0.865796
INR 100.340712
IQD 1531.439931
IRR 49245.731019
ISK 142.400984
JEP 0.865796
JMD 186.900509
JOD 0.828894
JPY 172.305743
KES 151.39488
KGS 102.232832
KHR 4700.702671
KMF 492.340258
KPW 1052.116012
KRW 1612.291055
KWD 0.357497
KYD 0.973978
KZT 606.853248
LAK 25169.39103
LBP 104745.815539
LKR 351.480519
LRD 234.977068
LSL 20.727492
LTL 3.451866
LVL 0.70714
LYD 6.307006
MAD 10.52427
MDL 19.730711
MGA 5178.839256
MKD 61.567289
MMK 2454.245682
MNT 4196.950222
MOP 9.450302
MRU 46.415189
MUR 53.144915
MVR 18.007558
MWK 2026.613733
MXN 21.79128
MYR 4.971339
MZN 74.771677
NAD 20.727487
NGN 1786.89858
NIO 42.962591
NOK 11.849024
NPR 160.312901
NZD 1.945964
OMR 0.449487
PAB 1.169038
PEN 4.145998
PGK 4.822327
PHP 66.037206
PKR 332.445259
PLN 4.265879
PYG 9058.18206
QAR 4.256005
RON 5.081579
RSD 117.101424
RUB 91.251047
RWF 1676.400657
SAR 4.38448
SBD 9.746182
SCR 17.064906
SDG 702.011685
SEK 11.179213
SGD 1.497192
SHP 0.91868
SLE 26.307644
SLL 24514.149043
SOS 668.109564
SRD 43.49699
STD 24196.728708
SVC 10.226653
SYP 15199.796755
SZL 20.727478
THB 37.929391
TJS 11.296148
TMT 4.103324
TND 3.393762
TOP 2.814764
TRY 46.965814
TTD 7.940625
TWD 34.184894
TZS 3030.735558
UAH 48.831642
UGX 4189.226528
USD 1.169038
UYU 47.51952
UZS 14794.17774
VES 133.584256
VND 30528.845862
VUV 139.77719
WST 3.204584
XAF 656.030538
XAG 0.030452
XAU 0.000348
XCD 3.159384
XDR 0.812964
XOF 656.030538
XPF 119.331742
YER 282.73182
ZAR 20.980552
ZMK 10522.750076
ZMW 27.402347
ZWL 376.429796
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Oil prices drop as Israel agrees to ceasefire proposal
Oil prices drop as Israel agrees to ceasefire proposal / Photo: Giuseppe CACACE - AFP

Oil prices drop as Israel agrees to ceasefire proposal

Oil prices sank more than five percent Tuesday after Israel said it had agreed to US President Donald Trump's proposal for a bilateral ceasefire with Iran.

Text size:

Shares in Asia were buoyant, as fears of an energy market shock eased following 12 days of war between Israel and its arch-foe. London, Paris and Frankfurt also rose at the open.

At around 0650 GMT on Tuesday, Brent was down 5.2 percent at $67.75 per barrel, while the main US crude contract WTI was 5.4 percent lower at $65.01 per barrel.

"A potential end to the conflict has been welcomed by market participants," wrote Lee Hardman at MUFG, who noted that Brent "has now almost fully reversed all of the gains since the conflict started".

"In the FX market a similar reversal is underway with the US dollar giving back recent gains. If Middle East risks now fade into the background as a market driver, it is more likely that the US dollar weakening trend will resume."

Crude prices had briefly spiked Monday morning on the prospect that Iran could retaliate to a weekend US attack on its nuclear facilities by throttling oil transport through the strategic Strait of Hormuz.

But they then tumbled as much as seven percent when Iran said it had launched missiles at a major US base in Qatar, with oilfield assets unaffected.

- 'War premium' -

"Tehran played it cool. Their 'retaliation' hit a US base in Qatar -- loud enough for headlines, quiet enough not to shake the oil market's foundations," said Stephen Innes at SPI Asset Management.

"And once that became clear, the war premium came crashing out of crude."

The Israeli government said in a statement Tuesday that the country had "achieved all the objectives" in its war with Iran, adding that it had removed "an immediate dual existential threat: nuclear and ballistic".

"Israel will respond forcefully to any violation of the ceasefire," the statement said.

Tokyo ended the day 1.1 percent higher and Shanghai closed up 1.2 percent. Hong Kong was trading up 2.1 percent on Tuesday afternoon.

Seoul surged 3.0 percent, Taipei gained 2.1 percent and Jakarta put on 1.3 percent, while Sydney closed up 1.0 percent.

The airline Virgin Australia climbed sharply as it re-entered the local share market, a dramatic comeback from near bankruptcy more than four years ago.

London gained 0.7 percent in early trade -- with gains limited as shares in oil majors Shell and BP fell owing to the oil price drop -- while Paris was up 1.5 percent and Frankfurt jumped 1.8 percent

In forex markets, the dollar gave up gains after Federal Reserve Governor Michelle Bowman said she would support cutting interest rates at July's meeting if inflation holds steady.

The market currently expects the Fed to resume cutting interest rates in September.

Bowman indicated that "ongoing progress in tariff negotiations providing a less risky economic environment to adjust policy"," prompting the dollar to weaken, Wan said.

- Key figures at around 0700 GMT -

Tokyo - Nikkei 225: UP 1.1 percent at 38,790.56 (close)

Hong Kong - Hang Seng Index: UP 2.1 percent at 24,181.94

Shanghai - Composite: UP 1.2 percent at 3,420.57 (close)

Euro/dollar: UP at $1.1609 from $1.1581 on Monday

Pound/dollar: UP at $1.3586 from $1.3526

Dollar/yen: DOWN at 145.05 yen from 146.12 yen

Euro/pound: DOWN at 85.44 pence from 85.60 pence

West Texas Intermediate: DOWN 5.4 percent at $65.01 per barrel

Brent North Sea Crude: DOWN 5.2 percent at $67.75 per barrel

New York - Dow: UP 0.9 percent at 42,581.78 (close)

London - FTSE 100: UP 0.7 percent at 8,816.78

(S.G.Stein--BBZ)