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

Market Reactions

Global oil prices took a significant dip following President Donald Trump’s announcement of a two-week ceasefire with Iran, contingent on the safe passage of vessels through the critical Strait of Hormuz. Brent crude has declined by 15.5% to $92.80 (£69.32) per barrel, while US crude prices experienced a nearly 16.5% drop, reaching $93.80.

Despite the recent decline, prices remain above pre-conflict levels set before the dispute began on 28 February. The cost of energy has surged as Middle Eastern oil and gas supplies faced severe interruptions due to Iranian threats against ships using the strait in response to US and Israeli airstrikes.

Conditional Ceasefire

In a late Tuesday social media update, Trump stated: “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 established a deadline for 20:00 EDT on Tuesday (00:00 GMT on Wednesday), warning that “a whole civilisation will die tonight” if no agreement was reached.