Oil prices have fallen below $100 per barrel following an announcement by U.S. President Donald Trump regarding a two-week ceasefire with Iran. This decline marks one of the most significant single-day drops in oil prices since the Gulf War in 1991.
Brent crude, the global benchmark, decreased approximately 16%, settling around $93 per barrel. This price, however, remains considerably higher than the pre-war level of about $73 per barrel recorded before the conflict began in late February.
Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, dropped to approximately $96 per barrel, reflecting a decline of around 14%.
In the lead-up to this situation, President Trump announced a suspension of military actions against Iran for two weeks, contingent upon Iran’s agreement to fully reopen the Strait of Hormuz. Following this, Israel also expressed support for the ceasefire.
Iran’s Foreign Minister, Abbas Araghchi, confirmed that the country would halt military operations and ensure safe passage through the Strait of Hormuz during this two-week period, provided that attacks against Iran cease.
Oil prices have significantly declined following a U.S.-Iran ceasefire announcement, with Brent and WTI benchmarks dropping sharply. The ceasefire includes a suspension of military actions contingent on Iran's agreement to reopen the Strait of Hormuz.
Source: Axios