Oil prices decline as United States and Iran pause military strikes

Oil prices dropped sharply after the United States stopped military strikes on Iran. The two countries signed an agreement on June 17 to pause the fighting. Brent crude oil fell by up to 5.77 percent, reaching around $92 per barrel.

For two weeks, attacks had disrupted oil supplies through the Strait of Hormuz. This narrow waterway between Oman and Iran carries a large share of the world's oil. Earlier, threats of a blockade in the Red Sea had pushed prices above $100 per barrel.

Investors reacted positively to the ceasefire because they hope a full diplomatic deal is possible. US and Iranian officials have been holding talks in Qatar. The drop in prices reflects reduced fears about global oil supplies.