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Oil Prices Fall After Ceasefire Announcement

Oil prices fell on Wednesday. It was the largest drop in 6 years.

President Trump agreed to a ceasefire with Iran. Pakistan's Prime Minister Shehbaz Sharif announced the ceasefire.

But oil prices then went back up. A safe passage agreement appeared to break down hours later.

Israel said it would follow the ceasefire. But Israel kept fighting in Lebanon separately.

Klear Note Oil prices fall when conflict risks drop. Iran supplies oil to world markets. Ceasefire news made traders think less oil disruption would happen.

Key Terms 3
ceasefire
an agreement to stop fighting
Strait of Hormuz
a narrow sea passage where much of the world's oil travels
safe passage agreement
a deal allowing ships to move safely through a waterway
Verified Sources 2