Oil slides after Trump agrees to conditional two-week Iran ceasefire
Oil slides after Trump agrees to conditional two-week Iran ceasefire
Following the agreement between President Donald Trump and Iran for a two-week pause in hostilities, global oil prices have dropped significantly. Brent crude is now 15.5% lower at $92.80 per barrel, and US-traded oil fell nearly 16.5% to $93.80. However, these prices are still above those recorded before the conflict began on 28 February.
Energy costs have risen sharply as Middle Eastern oil and gas deliveries faced major interruptions. Iranian threats to target vessels in the Strait of Hormuz, a critical shipping route, were a direct response to US and Israeli airstrikes. The disruption has led to heightened uncertainty in the market, impacting supply chains and driving up costs.
“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.”
On Tuesday evening, Trump shared a social media statement outlining the terms of the ceasefire. He had set a deadline for 20:00 EDT on Tuesday (00:00 GMT on Wednesday), warning that “a whole civilisation will die tonight” if no resolution was achieved by then.
