Oil prices plunged nearly 15% on Wednesday after U.S. President Donald Trump agreed to a two-week ceasefire with Iran, and said Washington would help ease shipping congestion in the Strait of Hormuz.
Brent Oil Futures expiring in June declined nearly 14% to $94.34 per barrel by 00:52 ET (04:52 GMT), while U.S. West Texas Intermediate (WTI) crude futures slumped 15.1% to $95.91 per barrel
Brent futures reached as low as $91.11/barrel in early trade, while WTI futures hit an intraday low of $91.70/barrel.
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Trump announces 2-week Iran ceasefire President Trump said on Tuesday that he had agreed to a two-week suspension of military action against Iran, just hours before a self-imposed 8:00 p.m. ET deadline.
He said the U.S. had already achieved its core military objectives, adding that Iran had presented a multi-point proposal that could serve as the basis for a broader agreement.
Iran also signaled a conditional willingness to de-escalate, saying safe passage through the Strait would be possible during the ceasefire period, provided hostilities were halted and vessels coordinated with Iranian authorities.
The breakthrough came after last-minute diplomatic efforts, with Pakistan playing a key mediating role in urging both sides to step back from the brink of escalation.
Trump’s deadline had been closely watched by markets, as it was expected to mark a major escalation in the conflict. In the hours leading up to it, oil prices had surged to multi-month highs amid fears that U.S. strikes could severely disrupt Middle East supply routes.
Earlier, Trump had warned that Iran’s failure to comply could result in consequences where “a whole civilization could die."
Trump offers help to clear Hormuz traffic In his latest social media post on Wednesday, Trump said that the U.S. would help ease the traffic buildup in the Strait, expressing confidence that the ceasefire would hold and describing the development as “a big day for world peace.”
The ceasefire, described by Trump as a “double-sided pause,” is conditional on Iran ensuring the immediate and safe reopening of the Strait.
The Strait of Hormuz, which handles roughly 20% of global oil flows, had been effectively shut amid weeks of conflict.
