Oil prices drop after Iran-Israel ceasefire, Trump announces China can again buy oil from Iran

Oil prices dropped by nearly 6% on Tuesday following a ceasefire agreement between Israel and Iran, which produces about 5% of the world's oil and natural gas supply.

Iran is also the world's ninth-largest oil producer and controls the Strait of Hormuz – which is between the Persian Gulf and the Gulf of Oman and provides the only water passage from the Persian Gulf to the Arabian Sea. It is also one of the world’s most important waterways for global shipping. CNN Business reported that around 20% of global production moves through this passageway. Iran controls its northern side. 

The roughly 6% drop, following the Monday night ceasefire agreement, was the lowest in the past two weeks. Israel began the conflict with a June 12 airstrike, which raised concerns about Iran closing the strait and squeezing the global energy market.  

Trump saying Tuesday morning on Truth Social that China can "now continue to purchase oil for Iran" also seemed to help the previously increasing oil prices.

Recent oil prices saw an increase as the missile strikes began, as high as $81 per barrel, according to the BBC. 

The global benchmark Brent fell by 5.68%, to $67.42 per barrel by 12:33 p.m. on Tuesday, according to CNBC. They also reported that U.S. crude oil fell to $64.63 per barrel, or 5.66%.