New Delhi: Oil prices fell by over 5 per cent to a two-week low in the international market on Tuesday after Israel announced that it has agreed to US President Donald Trump’s proposal for a ceasefire with Iran. Price of the benchmark Brent crude declined by nearly $4 to $67.7 a barrel while U.S. West Texas Intermediate crude turned cheaper by $3.75 at $64.76 per barrel as concerns abated over disruption in oil supplies due to the tensions in the Middle East.

Iran produces around 3.3 million barrels per day of crude oil which is 3 per cent of global supplies and exports around 1.5 mbpd with China being the main importer (80 per cent), followed by Turkey.Iran had also warned of blocking the Strait of Hormuz through which 20 per cent of the world’s oil is shipped out from countries such as Saudi Arabia and UAE. With the ceasefire coming into effect, fears over this disruption have subsided.