The Global oil prices have plummeted on Tuesday after President Donald Trump agreed to a two-week ceasefire with Iran.
The two-week ceasefire has spurred hopes that more oil tankers would be able to transit the key Strait of Hormuz soon.
Reports suggest that U.S. President Donald Trump agreed to a two-week ceasefire with Iran less than two hours before his deadline for Tehran to reopen the Strait of Hormuz or face devastating attacks on its civilian infrastructure.
The Reuters report read, โOil fell below $100 per barrel on Wednesday after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz.
Brent fell $14.84, or 13.6%, to $94.43 a barrel, and WTI slid $16.13, โor 14.3%, to $96.82 a barrel as of 0023 GMT.
Trump’s turnaround came shortly before his โdeadline for Iran to open the Strait of Hormuz, where 20% of โ the worldโs oil transits, or face widespread attacks on its civilian infrastructure.
“This will be a โdouble-sided ceasefire!” he wrote on social media, after posting earlier on Tuesday that “a whole โcivilisation will die tonight” if his demands were not met.
Iran said 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 โcoordination with Iranian armed forces, according to a statement by Foreign Minister Abbas Araqchi โon Wednesday.
However, multiple Gulf states have identified missile launches and drone attacks or issued warnings to civilians to take shelter.
โEven with โa โ peace deal, Iran may be emboldened to threaten the Strait of Hormuz more frequently in the future, and the market will price in heightened risk to the Strait of Hormuz going forward,โ MST Marquee analyst Saul Kavonic said.
The U.S.-Israeli war with Iran saw the steepest monthly โoil price rise in โhistory in March โ of more than 50%.
Trump said the U.S. had received a 10-point proposal from Iran, which he called a workable basis to negotiate, and โsaid the parties were very far along on reaching a definitive โagreement for long-term โ peace.
“It’s a good start and could pave the way to a more permanent reopening – but lots of ifs still to work out,” IG analyst Tony Sycamore said.
WTI has maintained its price premium over โBrent, reversing typical price patterns, due to its May delivery contract, while Brent is for June, reflecting that barrels with an earlier delivery date are commanding a higher priceโ.
In related news, President John Dramani Mahama has warned that the escalating conflict in the Middle East could have serious economic consequences for Africa.
According to John Mahama, hostilities involving the United States, Israel, and Iran would hurt African economies.
Mahama argued that the Middle East is the epicentre of global oil supplies, adding that African economies must brace for inevitable shocks.
President Mahama made this known while speaking during a bilateral meeting with Tanzanian President Samia Suluhu Hassan at the State House in Arusha on March 2, 2026.
He expressed alarm over the intensifying exchanges between the U.S., Israel, and Iran, as well as the counter-attacks, stressing that the tensions would trigger the rise of crude oil prices, which would impact African countries.
See the post below:
๐๐จ๐ง๐๐ฅ๐ ๐. ๐๐ซ๐ฎ๐ฆ๐ฉ ๐๐ซ๐ฎ๐ญ๐ก ๐๐จ๐๐ข๐๐ฅ ๐๐จ๐ฌ๐ญ ๐๐:๐๐ ๐๐ ๐๐๐ ๐๐.๐๐.๐๐
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) April 8, 2026
A big day for World Peace! Iran wants it to happen, theyโve had enough! Likewise, so has everyone else! The United States of America will be helping with the traffic buildup in theโฆ
๐จ President Donald J. Trump makes a statement on Iran: pic.twitter.com/9mqTayL0Q3
— The White House (@WhiteHouse) April 7, 2026
