Ceasefire Stabilizes Oil Prices: Relief for Global Markets

Global oil markets are poised for relief as prices are expected to stabilize around USD 65 per barrel. This comes after U.S. President Donald Trump announced a ceasefire between Iran and Israel, a development that promises to ease the recent geopolitical tensions that have sent shockwaves through the market.

A comprehensive report by SBI outlines the impact of the ceasefire, emphasizing the reduced likelihood of oil prices experiencing a dramatic rise. "Different scenarios being built along the Iran-Israel conflict seem a little far-fetched," the report stated, suggesting that predicted worst-case scenarios were more unlikely with the new truce in place.

Prior to the ceasefire announcement, crude oil prices had reached highs of USD 79 per barrel as markets grappled with the uncertainty of potential conflict escalation. However, with the ceasefire in effect, oil-importing countries like India are poised to benefit from more stable prices, potentially boosting their economic growth by mitigating the pressures of a high current account deficit.

(With inputs from agencies.)