Oil falls to near one-week lows.

Both oil contracts fell more than 7% in the previous day after rising to five-month highs following the US strike on Iran’s nuclear facilities over the weekend.

Brent oil futures were down $2.08, or 2.9%, to $69.40 a barrel around 7:01 AM WAT, after falling more than 4% and reaching their lowest level since June 11.

U.S. West Texas Intermediate crude fell $2.03, or 3.0%, to $66.48 per barrel, after falling 6% to its lowest level since June 9 earlier in the session.

Both oil contracts fell more than 7% in the previous session after soaring to five-month highs after the US attacked Iran’s nuclear facilities over the weekend, raising concerns about an escalation in the Israel-Iran confrontation.

The price drop continues after U.S. President Donald Trump announced a cease-fire between Iran and Israel, easing concerns about supply disruptions in the Middle East, a major oil producing region.

Oil prices fell by more than 6% on Monday after Iran targeted a US military station in neighbouring Qatar in revenge for US weekend assault on Iranian nuclear facilities.

Trump also announced on Monday that Israel and Iran have fully agreed to a truce, with Iran beginning immediately and Israel following after 12 hours.

If both sides preserve calm, the war will formally finish in 24 hours, capping a 12-day struggle.

Iran is OPEC’s third-largest crude producer, and lowering tensions would allow it to export more oil while preventing supply interruptions, which have contributed to recent increases in oil prices.

The United States’ active engagement in the war drew investors’ attention to the Strait of Hormuz, a narrow and critical passageway between Iran and Oman in the Mideast Gulf that transports between 18 and 19 million barrels of crude oil and gasoline per day, accounting for about a fifth of global consumption.