Global Oil Prices Plunge After Surprise Israel-Iran Peace Deal

Oil prices around the world dropped sharply—over 6% in a single day—after Israel and Iran agreed to a ceasefire, calming fears of a long-term conflict in the Middle East. Brent crude closed at $67.14, and U.S. WTI oil settled at $64.37—the lowest levels in two weeks.

Traders had feared the fighting could block the Strait of Hormuz, a vital oil route for nearly 20% of global oil, but those worries have now faded. Energy experts say the “war premium” that raised oil prices earlier is now completely gone.

Even so, U.S. President Trump accused both Israel and Iran of breaking the ceasefire just hours after it began, creating some doubt in the market.

Why Oil Prices Were Rising Before

The oil market went into shock after Israel bombed Iran’s nuclear sites on June 13. That led to missile strikes, U.S. involvement, and fears of blocked oil supply lines. Brent prices had touched a five-month high just days ago.

But now, Iran’s response to a U.S. base in Qatar is seen as “de-escalatory,” helping prices drop fast. Trump also announced that China could continue buying oil from Iran, easing supply fears further.

What About Nepal? Will Prices Go Down?

Unfortunately, Nepal buys fuel directly from India, not from global oil traders. That means changes in global crude prices don’t affect Nepal’s prices unless Indian Oil Corporation adjusts its own rates. For now, no such update has been made.

So despite cheaper global oil, Nepali consumers won’t see immediate changes in petrol, diesel, or gas prices.