Oil prices plunge after US announces ceasefire with Iran

Oil prices have fallen below US$100 per barrel after US President Donald Trump announced a two-week ceasefire agreement with Iran.

Source: Axios

Details: Crude oil prices dropped sharply below US$100 per barrel after Trump said the US had agreed to a two-week ceasefire with Iran.

According to Axios, this marks the largest single-day drop in oil prices since the 1991 Gulf War.

Specifically, the Brent crude futures global benchmark price fell by around 16% to approximately US$95 per barrel. However, this remains significantly higher than the level of around US$73 per barrel recorded before the escalation of the conflict in late February.

Meanwhile, the US benchmark, West Texas Intermediate (WTI), dropped to about US$96 per barrel, a decrease of roughly 14%.

Background:

• Trump said he had agreed to suspend bombing and military action against Iran for two weeks if the country agrees to fully reopen the Strait of Hormuz.
• Israel later joined the two-week ceasefire with Iran announced by Trump.
• In turn, Iranian Foreign Minister Abbas Araghchi said Iran would halt military actions and ensure safe passage through the Strait of Hormuz for two weeks, provided attacks on the country stop.

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