Oil prices plunge after US announces ceasefire with Iran

Iryna Vakuliuk - 8 April, 06:37

Oil pumping equipment at work. Photo: Getty Images

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.

In particular, the global benchmark Brent crude futures fell by around 16% to approximately US$93 per barrel. However, this remains significantly higher than the roughly US$73 per barrel recorded before the escalation of tensions in late February.

Meanwhile, 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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