U.S. crude oil prices have fallen below $65 per barrel, reflecting a significant selloff influenced by ongoing geopolitical tensions in the Middle East.

This drop follows a ceasefire agreement between Israel and Iran, which had earlier led to fluctuations in crude oil prices due to fears of extended conflict affecting oil supply routes.

The benchmark West Texas Intermediate (WTI) crude oil was reported trading at around $64.45 per barrel, experiencing a decline of nearly 5% in recent trading sessions.

Analysts indicate that investor anxiety regarding supply disruptions, which peaked amidst rising hostilities, has started to ease following the ceasefire announcement.

The price movement marks a sharp contrast to the elevated levels seen earlier in the month amid escalating geopolitical risks.

Market watchers have noted that this volatility in oil prices is also being shaped by broader economic indicators, including fluctuations in global demand and recent reports showcasing a slowdown in economic growth in various regions.

The U.S. Energy Information Administration (EIA) has highlighted trends that suggest a potential decrease in domestic oil production, further contributing to uncertainty in the market.

Internationally, crude oil prices are also influenced by OPEC's production decisions and strategic adjustments made by member countries in response to the changing global landscape.

The organization is reportedly monitoring the effects of new agreements and potential impacts on global supply chains, ensuring that production levels align with market demands.

As of now, analysts continue to assess the implications of not only the ceasefire but also the overall geopolitical landscape, which remains fluid, particularly concerning U.S.-Iran relations.

The market's reaction to upcoming economic data releases will likely be critical in determining the trajectory of oil prices in the near term.