Kathmandu. The price of crude oil has fallen sharply on Tuesday. This decline is the highest in the last one week. The reason for this is the statement of US President Donald Trump.
Trump said there was a ceasefire between Iran and Israel. This has allayed fears of oil supply disruptions in the region.
Iran had threatened to close the Strait of Hormuz. As a result, the price of crude oil reached a five-month high. 20% of the world’s crude oil is supplied through this route.
Brent crude was trading lower by $2.69, or 3.76 per cent, at $68.79 a barrel in early trade on Tuesday. At the beginning of the trading session, it fell by more than 4 percent and reached its lowest level since June 11.
U.S. West Texas Intermediate crude was also down $2.7, or 3.94 percent, at $65.46 a barrel. This is the lowest level since June 9.
The fall in oil prices has devastated the world. – Agency
