Wednesday 08/April/2026 – 09:16 AM
Price decreased Oil To below $100 a barrel today, Wednesday, after US President Donald Trump announced his agreement to a two-week ceasefire with Iran, on the condition that the Strait of Hormuz is reopened immediately.
Brent crude fell $14.84, or 13.6%, to $94.43 per barrel, and US West Texas Intermediate crude fell $16.13, or 14.3%, to $96.82 per barrel, by 00:23 GMT.
Date of opening the Strait of Hormuz
Trump’s change of position came shortly before the deadline he set for Iran to open the Strait of Hormuz, through which 20% of the world’s oil usually passes, or face widespread attacks on its civilian infrastructure, according to Reuters.
This will be a ceasefire for both sides, he wrote on social media, after he threatened earlier on Tuesday that an entire civilization would perish tonight if his demands were not met.
Iranian Foreign Minister Abbas Araqchi said in a statement on Wednesday that his country will stop its attacks if the attacks on it stop, and that safe passage through the Strait of Hormuz will be possible for two weeks in coordination with the Iranian armed forces.
The Strait of Hormuz will be more threatened in the future
“Even with a peace deal, Iran may be emboldened to threaten the Strait of Hormuz more frequently in the future, and the market will take into account the increased risks to the Strait in the future,” said MST Markey analyst Saul Cavonic.
The US-Israeli war on Iran witnessed the largest monthly rise in oil prices in history, as they rose by more than 50% in March. Trump said that the United States had received a 10-point proposal from Iran, which he described as a practical basis for negotiation. He added that the two parties had come a long way toward reaching a final agreement for long-term peace.
It’s a good start and could pave the way for a more sustainable reopening – but there are still plenty of possibilities, said IG analyst Tony Sycamore.
West Texas Intermediate crude maintained its price premium over Brent crude in a reversal of usual price patterns, because its futures contracts are for delivery in May, while Brent crude futures contracts for delivery in June, because barrels with a closer delivery date achieve a higher price.
