Oil prices tumbled over five percent on Tuesday after Israel accepted a bilateral ceasefire proposal from U.S. President Donald Trump aimed at ending hostilities with Iran. The announcement eased fears of a major energy market disruption after nearly two weeks of conflict, lifting investor sentiment across Asian markets. European stocks in London, Paris, and Frankfurt also opened higher. As of 06:50 GMT, Brent crude had fallen by 5.2 percent to \$67.75 per barrel, while U.S. benchmark West Texas Intermediate (WTI) dropped 5.4 percent to \$65.01 per barrel. “A potential end to the conflict has been welcomed by market participants,” wrote Lee Hardman at MUFG, who noted that Brent “has now almost fully reversed all of the gains since the conflict started”. “In the FX market a similar reversal is underway with the US dollar giving back recent gains. If Middle East risks now fade into the background as a market driver, it is more likely that the US dollar weakening trend will resume.” Crude prices had briefly spiked Monday morning on the prospect that Iran could retaliate to a weekend US attack on its nuclear facilities by throttling oil transport through the strategic Strait of Hormuz. But they then tumbled as much as seven percent when Iran said it had launched missiles at a major US base in Qatar, with oilfield assets unaffected. ‘War premium’ – “Tehran played it cool. Their ‘retaliation’ hit a US base in Qatar — loud enough for headlines, quiet enough not to shake the oil market’s foundations,” said Stephen Innes at SPI Asset Management. “And once that became clear, the war premium came crashing out of crude.” The Israeli government said in a statement Tuesday that the country had “achieved all the objectives” in its war with Iran, adding that it had removed “an immediate dual existential threat: nuclear and ballistic”. “Israel will respond forcefully to any violation of the ceasefire,” the statement said.