US Crude Price Falls Below $100 Following Trump's Announcement of Two-Week Ceasefire

U.S. Crude Prices Plummet Amid Iran Ceasefire Announcement

U.S. West Texas Intermediate (WTI) crude fell by nearly $20 per barrel on Wednesday after U.S. President Donald Trump announced a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz.

WTI crude for May delivery fell $18.10, or 16.02%, to $94.85 per barrel as of 2320 GMT, reaching its lowest point since March 26 at $91.05. This significant decline was a direct response to the announcement, which was made shortly before Trump's deadline for Iran to open the Strait of Hormuz. The Strait of Hormuz is a critical waterway, through which 20% of the world's oil transits.

The announcement was preceded by a tense exchange on social media, where Trump had warned Iran that a "whole civilization will die tonight" if his demands were not met by Tuesday. In response, Iran stated that it would halt its attacks if attacks against it stopped and that safe transit through the Strait of Hormuz would be possible for two weeks in coordination with Iranian armed forces, according to a statement by Foreign Minister Abbas Araqchi on Wednesday.

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The recent conflict between the U.S. and Iran has had a profound impact on global oil prices. In March, the U.S.-Israeli war with Iran resulted in the steepest monthly oil price rise in history, exceeding 50% for the month.

Trump stated that the U.S. had received a 10-point proposal from Iran, which he called a workable basis to negotiate. He also noted that the parties were very far along on reaching a definitive agreement for long-term peace. While the announcement marks a significant development in the conflict, many details still need to be worked out to ensure a lasting resolution.