Oil prices plunged Tuesday morning after President Donald Trump secured a ceasefire between Iran and Israel, bringing an abrupt end to a conflict that had threatened to ignite a wider regional war. The markets responded with enthusiasm—Brent crude dropped decisively below the $70 mark, a move that signals both geopolitical relief and a potential windfall for American consumers.

Brent futures for August delivery fell three percent to $69.29 a barrel by 7:30 a.m. New York City time and mid-morning London time. West Texas Intermediate, the U.S. benchmark, was down a similar 3.07 percent to $66.41. These are sharp, meaningful drops in a commodity market where such moves often signal a major shift in outlook.

The shift came as global markets digested the news that Trump had brokered a cease-fire agreement to end weeks of escalating violence. The president said this marked the end of what he called the “12 day war.” Oil had surged about 10 percent since mid-June, fueled by tit-for-tat strikes between Israel and Iran, including direct U.S. involvement and a retaliatory attack on an American base in Qatar. The risk premium was building—until Trump intervened.

Now that the war appears to be over, traders are reassessing the outlook. What risked becoming a full-blown energy crisis is turning into a diplomatic victory.

For U.S. households, the peace deal could translate into real savings. Lower crude prices tend to filter through to lower gasoline prices, just as summer vacation season picks up. Trump has long prioritized energy affordability and viewed oil prices as a key economic lever. With this move, he may have delivered both geopolitical stability and a break for American wallets.

There are still questions about Iran’s intentions. Over the weekend, Iran’s parliament reportedly approved the closure of the Strait of Hormuz, the strategic chokepoint for much of the region’s oil exports. However, that decision rested with the country’s national security council, and with tensions cooling, such a drastic step now appears unlikely.

Analysts on Wall Street believed that a shutdown of the strait could have sent oil prices above $100 per barrel due to the lack of viable alternative shipping routes.

For now, the war is over. Oil is falling. And Americans could soon feel the peace dividend at the pump.