Oil prices rose 3% on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog and the U.S. and Vietnam reached a trade deal, but a surprise build in U.S. crude supplies limited price gains somewhat.

Oil traders view the escalating conflict between Israel and Iran as the most significant geopolitical event since Russia’s full-scale invasion of Ukraine in 2022. In recent days, energy facilities in both countries have been targeted,

Oil prices are expected to fall further if the ceasefire between Iran and Israel holds, according to experts. Things took a dramatic turn on Tuesday after US President Donald Trump announced a ceasefire and expressed his desire to maintain the flow of oil from Iran.