Oil slides after Trump agrees to conditional two-week Iran ceasefire
Oil slides after Trump agrees to conditional two-week Iran ceasefire
Following President Donald Trump’s announcement of a two-week pause in US-Iran hostilities, global oil prices have dropped significantly. Brent crude fell 15.5% to $92.80 (£69.32) per barrel, while US crude prices declined nearly 16.5% to $93.80. Despite the decline, current levels remain above pre-conflict benchmarks set in early February.
Iranian actions have caused severe disruptions to Middle Eastern energy exports, pushing prices upward. The nation’s threats to block shipping in the strategic Strait of Hormuz have created uncertainty, impacting oil and gas supply chains. This has led to a sharp increase in energy costs, with traders reacting to the potential for further tensions.
Conditional agreement and deadline
On Tuesday evening, Trump released a statement through social media, outlining his terms. “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,” he wrote. The decision came with a firm deadline, set for 20:00 EDT on Tuesday (00:00 GMT on Wednesday), and a warning that failure to reach a deal could trigger severe consequences.
“A whole civilisation will die tonight” if no agreement was achieved by the stated time, according to Trump’s message.