Oil slides after Trump agrees to conditional two-week Iran ceasefire

Oil slides after Trump agrees to conditional two-week Iran ceasefire

International crude oil markets experienced a notable drop following President Donald Trump’s agreement to a temporary pause in hostilities with Iran, contingent on the free passage of ships through the critical Strait of Hormuz. Brent crude prices declined by 15.5%, settling at $92.80 per barrel, while US crude prices fell nearly 16.5% to $93.80. Despite the decline, current prices remain elevated compared to the levels observed prior to the conflict’s onset on 28 February.

The recent energy price slump reflects ongoing disruptions to Middle Eastern oil and gas exports, which have been hampered by Iran’s threats to target vessels navigating the Strait of Hormuz. These actions were a response to US and Israeli airstrikes, which Iran sought to counter by restricting maritime traffic. Trump’s decision came after a deadline expired, with the leader emphasizing the importance of securing safe access to the strategic waterway.

Conditional Ceasefire Terms

In a social media message, Trump outlined the terms of the agreement, stating:

“I agree to suspend the bombing and attack of Iran for a period of two weeks… subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”

The president had set a timeframe for 20:00 EDT on Tuesday, warning that failure to reach a deal would result in severe consequences, including the potential collapse of an entire civilization by the end of the day.