Brent Crude Price Falls 15% on U.S-Iran Ceasefire Deal
With Brent down 15%, oil prices retreated sharply on Wednesday due to the U.S.-Iran temporary ceasefire, which could pave the way for negotiations to end Middle East tensions.
Brent crude prices fell below $100 per barrel in international futures markets at 0000 GMT on Wednesday after US President Donald Trump announced that a two-week mutual ceasefire with Iran had been agreed on the condition that the Strait of Hormuz is fully reopened.
After rising to as high as $111.80 on Tuesday, Brent crude ended trading at $109.27 per barrel. As of 0634 GMT, the price of Brent crude futures stood at $92.98, marking a decrease of around 15% compared to the previous close.
At the same time, West Texas Intermediate (WTI) crude traded at $96.67 per barrel. The decline in prices was driven by Trump’s announcement of a two-week reciprocal ceasefire with Iran, contingent on the full reopening of the Strait of Hormuz.
In a post on his Truth Social account, Trump said that talks mediated by Pakistan yielded positive results just hours before the deadline he had set for Iran expired.
Noting that the US had received a 10-point proposal from Iran, Trump described it as a basis for negotiation and said the parties were very close to reaching a final agreement aimed at long-term peace.
Iranian authorities, for their part, stated that they would halt their attacks if attacks against them ceased. Iranian Foreign Minister Abbas Araghchi said that, in coordination with the Iranian armed forces, safe passage through the Strait of Hormuz would be ensured for two weeks.
Trump initially gave Tehran a 48-hour deadline for an agreement and later extended it to April 8. Shortly before the deadline, he warned on social media: “Tonight, an entire civilisation could disappear and may never return.”
Brent crude generally traded above $100 with high volatility since the beginning of the war on Feb. 28, following US and Israeli attacks on Iran. Namibia Faces Tight Growth Outlook on Weak Diamond Demand
