EBC Markets Briefing | ​Oil prices plunge on Trump's U-turn on Iran

Oil prices tumbled on Tuesday to their lowest level in more than a week as Trump said a ceasefire has been agreed between Iran and Israel, relieving worries of supply disruption in the area.

Iran's early notice of attack on a US air base marked its intention to seek a balance between saving face with a military response but without provoking a cycle of escalation it can't afford.

Both the oil contracts settled over 7% lower in the previous session after rallying to five-month-highs after the US joined Israel in attacking Iran's nuclear facilities over the weekend.

Iran's parliament called for the closure of the Strait of Hormuz, a major artery for the world's oil and gas, according to state-run TV on Sunday. But the move would incense Gulf nations.

The European Commission has for the first time signaled flexibility on a major digital rulebook as it seeks relief from Trump's impending trade tariffs. The US has run a service surplus against the bloc.

European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the two sides, sources familiar with the negotiations said.

Brent crude easily broke below the psychological support at $70 with few signs of bottoming out. As such it could fall further towards $66.80, a level which is expected to cap the loss.

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