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

Global oil prices have dropped significantly following President Donald Trump’s announcement of a two-week ceasefire with Iran, which hinges on allowing ships to traverse the vital Strait of Hormuz. Brent crude fell 15.5% to $92.80 (£69.32) per barrel, while US crude declined nearly 16.5% to $93.80. Despite the sharp decrease, prices remain above their pre-conflict levels, which began on 28 February.

The energy market saw a rise in costs due to the disruption of Middle Eastern oil and gas supplies, triggered by Iranian threats to block shipping routes through the strait in retaliation for US and Israeli strikes. This ongoing tension has kept energy prices elevated since the conflict started, though the recent ceasefire agreement has eased some of the pressure.

On Tuesday evening, President Trump posted a statement on social media, 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.” He had set a deadline for 20:00 EDT (00:00 GMT on Wednesday), warning that “a whole civilisation will die tonight” if no agreement was reached.