This is the moment oil traders have been waiting for: a ceasefire and a message from Iran that the vital shipping route, the Strait of Hormuz, through which a fifth of the world's liquefied natural gas (LNG) and crude oil passes, will reopen, writes Sky News.
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Oil prices have fallen significantly, falling more than 13.5% to $94 per barrel for benchmark Brent crude.
Production in major oil-producing nations in the Middle East has slowed and it may not recover quickly, so supply problems will still exist.
It is also possible that after the Trump administration's repeated announcements of an end to the war, many experts are skeptical of the latest statement. Prices are still high.
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Before the US and Israeli attacks began, oil was trading around $72. The average price last year was $69. So the price drop is good news, but there is no real reason to celebrate just yet.
All major indexes in Asia are up. South Korea's Kospi stock index is up a whopping 7%, while Japan's Nikkei is up 5%. Both countries are heavily dependent on imports from the Middle East and have seen panic buying due to fears of shortages.
Previously, “FACTS” wrote that the war in the Middle East is destroying the global economy.
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