TLDR
- Brent crude fell 13% to ~$94 a barrel; WTI dropped 15% to ~$96 a barrel
- The U.S. and Iran agreed to a two-week ceasefire on Tuesday evening
- Trump said the U.S. will help ease shipping traffic through the Strait of Hormuz
- Iran’s Foreign Minister confirmed Iran will allow safe passage for ships through the strait
- The Strait of Hormuz handles roughly 20% of global oil flows
Oil prices dropped sharply on Wednesday after the U.S. and Iran reached a two-week ceasefire agreement, easing fears of a major disruption to global oil supply.
Brent crude fell around 13% to $94.77 a barrel. West Texas Intermediate dropped roughly 15% to $96.23 a barrel. Both benchmarks hit intraday lows below $92 a barrel in early trading.
The deal was struck on Tuesday evening, just before President Trump’s self-imposed 8:00 p.m. Eastern deadline. In the days before the deadline, oil prices had surged to multi-month highs as markets feared a full escalation of the conflict.
Trump had warned that failure to comply could result in severe consequences. He described the potential fallout as one where “a whole civilization could die.”
The Ceasefire Deal
Trump announced the suspension of military action in a post on Truth Social. He said the U.S. had already met its core military objectives and that Iran had put forward a multi-point proposal that could form the basis of a wider agreement.
Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push
U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iranâs agreement to the immediate, full, and⌠pic.twitter.com/npInV48tUR
— Wu Blockchain (@WuBlockchain) April 7, 2026
Iran’s Foreign Minister Seyed Abbas Araghchi confirmed the country’s Supreme National Security Council agreed to halt attacks. He said ships would be allowed “safe passage” through the Strait of Hormuz, provided hostilities stopped and vessels coordinated with Iranian authorities.
Pakistan played a key role as a mediator, helping push both sides toward a deal in the final hours before the deadline.
Trump described the ceasefire as a “double-sided pause.” He said it is conditional on Iran ensuring the immediate reopening of the strait.
Hormuz Back Open
The Strait of Hormuz had been effectively closed for weeks during the conflict. It handles around 20% of global oil flows, making it one of the most critical shipping routes in the world.
Trump posted on social media Wednesday morning that the U.S. would be “helping with the traffic buildup” through the strait. He wrote: “There will be lots of positive action! Big money will be made. Iran can start the reconstruction process.”
The reopening of the strait is the main reason markets reacted so sharply. With the route blocked, supply fears had pushed prices higher. The ceasefire removed that concern, at least in the short term.
The ceasefire is set to last two weeks. Iran confirmed it will allow safe passage during that period, provided the terms of the deal are upheld.
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