Oil slides after Trump agrees to conditional two-week Iran ceasefire

Oil Slides After Trump Agrees to Conditional Two-Week Iran Ceasefire

Market Reactions to Strategic Agreement

Global oil prices have plummeted following President Donald Trump’s announcement of a two-week ceasefire with Iran, provided vessels can traverse the vital Strait of Hormuz. Brent crude fell by 15.5%, trading at $92.80 per barrel, while US oil prices dropped nearly 16.5% to $93.80. Despite this decline, current levels remain above those seen before the conflict began on February 28.

The recent price drop coincided with heightened tensions over Middle Eastern energy supplies, which had been strained by Iran’s threats to target ships navigating the strategic waterway. This disruption was a response to US and Israeli airstrikes, which Iran sought to retaliate against. Trump’s decision came after setting a deadline for 20:00 EDT on Tuesday, warning that “a whole civilisation will die tonight” if no agreement was reached.

“I agree to suspend the bombing and attack of Iran for a period of two weeks… subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”