Oil sinks as Israel accuses Tehran of violating ceasefire, just hours after U.S. President Donald Trump announced it had come into effect. CNBC's Dan Murphy joins "Worldwide Exchange" with the details.

Oil prices have declined sharply, reaching two-week lows after Israel accused Iran of violating a ceasefire agreement by firing missiles. Iran has strongly denied the accusation, and there is no official confirmation that the ceasefire has been broken. Analysts indicate that if both sides refrain from further escalation, the oil market could stabilize. 

A recent symbolic strike by Iran on a US base in Qatar resulted in no casualties and was described by US President Donald Trump as 'very weak,' suggesting a low appetite for escalation from Iran. The situation remains fluid, with traders closely monitoring developments as oil prices continue to fall.

Oil sinks as Israel accuses Tehran of violating ceasefire

Turn now to the energy trade and how early morning developments between Israel and Iran are impacting the oil market that you can see here Has fallen sharply over the last week. We're taking a look at WTI down double digits over the last week Let's get over to our Dan Murphy in Dubai Dan. Good morning Frank good morning to you and to build on what rap was saying This could really be a turning point for the oil markets as well What we're seeing right now is the risk premium that was built into oil last week Evaporating fast with oil now sinking to two-week lows and the political fallout Also keeping traders on edge as Raf mentioned in the last hour Israel accusing Iran of violating the ceasefire deal by firing missiles It's a claim that Iran strongly denies right now There's no official confirmation that the ceasefire has been broken and analysts I've been speaking to say if both sides hold the line here Traders could see a return to stability in the oil markets remember as well Iran's Symbolic strike on the US base in Qatar overnight caused no casualties and it appeared designed to avoid triggering a massive escalation with the United States President Trump himself called it quote very weak and That suggests that Iran's appetite to escalate in this environment is very low So it also reduces the risks that we could see an impact inside the Strait of Hormuz Which as you know has really been at the center of speculation all week So we're watching this really closely. It appears the conflict might be calming down But of course traders aren't letting their guard down just yet You really do get the sense that this is going to be a headline driven market for some time to come as we see oil Prices continuing to fall here Frank. Yes. Certainly. We're watching oil prices. We were mentioned WTI I also bring crude down about three and a half percent right now our Dan Murphy live in Dubai. Good to see you Thank you very much

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