Analysts with ING financial group outlined four possible avenues for Iran: full escalation that also draws in other nations such as China or Russia; disruption of the Strait of Hormuz; active or passive support for terrorist attacks in the U.S. and Europe; or taking no action at all.

Oil is likely to rise by $3-$5 per barrel when trading resumes on Sunday evening after the U.S. attacked Iran at the weekend, market analysts said.

In early trade, Brent crude was down 3.6% to $68 a barrel, while West Texas Intermediate fell 3.6% to $66.01 a barrel.

The plunge took crude prices to well below their level on June 12, the day before Israel attacked Iran. Read more at straitstimes.com. Read more at straitstimes.com.

Oil prices fell sharply to their lowest in more than a week on Tuesday as U.S. President Donald Trump said a ceasefire has been agreed between Iran and Israel, alleviating worries of supply disruptions in the Middle East - a major oil-producing region.

Oil sank and US stock-index futures climbed after President Donald Trump announced a tentative ceasefire between Israel and Iran, raising hopes that the worst of the Middle East conflict has passed.