Oil prices fell on Wednesday following President Trump’s announcement to extend the ceasefire with Iran. The decision provided temporary relief to energy markets that have experienced significant volatility since the conflict began.

Brent crude dropped below per barrel, while West Texas Intermediate (WTI) also saw declines. The price movement reflects investor optimism that the extended truce could lead to a more permanent resolution.

“Markets are breathing a sigh of relief,” said one energy analyst. “The ceasefire extension, even without confirmed peace talks, reduces the immediate risk of supply disruptions.”

The Iran war has had far-reaching economic consequences beyond energy markets. UK inflation has risen as fuel prices increased, and air fares have soared by nearly 25% due to airspace restrictions forcing flights to re-route.

Malaysia-based Karex, the world’s largest condom manufacturer, announced plans to raise prices, citing supply chain disruptions caused by the conflict. The company produces over five billion condoms annually for global brands.

Financial markets are expected to remain sensitive to any developments in the region as traders weigh the prospects for a lasting peace agreement.