Global oil prices have dropped sharply, and stock markets have risen after the US and Iran agreed to a two-week ceasefire, which includes the reopening of the Strait of Hormuz.
The price of Brent crude, the benchmark, fell by approximately 15.9% to $92.30 (68.87 pounds) per barrel, while US-traded oil was nearly 16.5% cheaper at $93.80, BBC reports.
- US and Iran agree on a two-week ceasefire
- US-Iran Ceasefire: What the 10-point plan proposed by Iran contains
However, prices remain higher than before the conflict began on February 28. At that time, oil was trading around $70 per barrel.
The cost of energy has increased after oil and gas deliveries from the Middle East were severely disrupted following Iran's threats to attack ships attempting to transit the strait, in retaliation for US and Israel's airstrikes.
Major stock indices in the Asia-Pacific region rose in early trading hours. Japan's Nikkei 225 index rose by 4.5%, while Australia's ASX 200 increased by over 2.5%.
US President Donald Trump announced on Tuesday that he had agreed to a two-week ceasefire with Iran.
Trump said the ceasefire agreement was conditioned on Iran's acceptance of reopening the strategically vital Strait of Hormuz.