Global oil prices have fallen sharply, and stock markets have jumped after the US and Iran agreed to reach a two-week ceasefire agreement that includes the reopening of the key Strait of Hormuz waterway. The price of benchmark Brent crude fell by about 13% to $94.80 (£70.73) a barrel, US-traded oil was more than 15% lower at $95.75.

The decline in oil prices following the ceasefire agreement is likely to exert short-term downward pressure on upstream petrochemical feedstocks such as ethylene and propylene, thereby driving a potential price adjustment in plastic resins. However, as crude oil prices remain significantly above pre-conflict levels (around $70 per barrel), resin prices are more likely to ease rather than decline sharply. At the same time, the reopening of the Strait of Hormuz helps reduce supply disruption risks, improving market sentiment in the short term.