Oil markets took a sharp hit on Tuesday after Israel announced it had accepted a ceasefire deal proposed by U.S. President Donald Trump, raising hopes for an end to nearly two weeks of warfare with Iran.

The news sent Brent crude sliding by 3.5% to $69 per barrel, while U.S. benchmark WTI also fell 3.5% to $66.10. Analysts said the drop effectively erased nearly all the price gains that had built up since the fighting began.

“Market fears around energy supply shocks are cooling off,” noted MUFG’s Lee Hardman, who added that the ceasefire has eased immediate concerns over disruption in the oil-rich Middle East.

Tensions had spiked earlier when Iran responded to a U.S. strike on its nuclear facilities by firing missiles at a U.S. base in Qatar. However, oil assets remained untouched, and Tehran’s response was seen as measured—loud enough for headlines, but not enough to rattle global oil flows. That perception helped pull the “war premium” out of crude prices.

Israel said it had achieved its military goals, including neutralizing what it called a dual existential threat from Iran’s nuclear and ballistic capabilities. It warned, however, that it would act decisively against any breach of the ceasefire.

Global stock markets responded positively to the truce. Tokyo’s Nikkei ended up 1.1%, Shanghai climbed 1.15%, and Hong Kong surged 2.06%. European markets followed suit, with Frankfurt jumping 1.8%, Paris gaining 1.5%, and London up 0.3%, though oil majors like Shell and BP dragged on the FTSE 100 due to falling crude prices.

In currency markets, the dollar pulled back after Fed Governor Michelle Bowman indicated she would support rate cuts if inflation remained stable. That added to expectations the Federal Reserve could resume easing monetary policy as soon as September.

Here are key figures from early Tuesday trading (08:30 GMT):

Brent Crude: $69.00 (–3.5%)

WTI Crude: $66.10 (–3.5%)

Nikkei 225 (Tokyo): +1.1% at 38,790.56

Hang Seng (Hong Kong): +2.06% at 24,177.07

Shanghai Composite: +1.15% at 3,420.57

FTSE 100 (London): +0.3% at 8,787.24

Dow Jones (New York): +0.9% at 42,581.78 (previous close)

Euro/USD: $1.1591

Pound/USD: $1.3598

USD/JPY: 145.04