Oil drops below $100 after Iran ceasefire

Global oil prices fell sharply on Wednesday, dropping below $100 per barrel after Donald Trump announced a two-week ceasefire agreement with Iran, easing concerns over supply disruptions in the energy market.

Brent crude declined by $14.84, or 13.6%, to $94.43 a barrel, while West Texas Intermediate (WTI) crude fell $16.13, or 14.3%, to $96.82. The sharp drop followed renewed optimism that tensions in the Middle East may temporarily subside.

The ceasefire announcement came just ahead of a US deadline for Iran to reopen the strategically vital Strait of Hormuz, through which around 20% of the world’s oil supply passes. Trump described the agreement as a “double-sided ceasefire,” signalling a pause in hostilities after weeks of escalating conflict.

Iran’s Foreign Minister Abbas Araqchi confirmed that Tehran would halt its attacks if aggression against it stopped, and said safe transit through the Strait of Hormuz would be ensured for the duration of the truce.

Global Oil Prices Rise Further Amid Ongoing Regional Conflict

Despite the agreement, uncertainty remains in the region. Several Gulf states have reported missile activity and issued safety warnings, raising concerns about the durability of the ceasefire.

Market analysts noted that while the truce has reduced immediate fears, risks surrounding the Strait of Hormuz could persist. Experts warned that even with a peace deal, Iran may continue to exert strategic pressure over the key shipping route, keeping markets sensitive to geopolitical developments.

The recent conflict had driven oil prices to record monthly gains in March, with increases exceeding 50%. Analysts say the current decline reflects a partial unwinding of that surge as markets reassess risks.

Investors are now closely watching developments to determine whether the ceasefire can evolve into a more lasting agreement.