Global oil prices fell sharply on Wednesday after a ceasefire agreement between the United States and Iran signalled easing geopolitical tensions.
Brent crude dropped by 13.28 per cent to $94.76 per barrel, while U.S. West Texas Intermediate (WTI) declined by 14.72 per cent to $96.31 per barrel.
The decline followed an announcement by Donald Trump, who said: “Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir… and subject to the Islamic Republic of Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks.”
Trump added that the pause would allow negotiations to be concluded, noting that both sides were “very far along” in reaching a long-term agreement.
In response, Seyed Abbas Araghchi, Iran’s foreign minister said Tehran would reciprocate the move.
“If attacks against Iran are halted, our powerful armed forces will cease their defensive operations,” he stated.
Araghchi also assured that safe passage through the Strait of Hormuz would be maintained during the ceasefire, subject to coordination with Iran’s military.
The de-escalation follows mediation efforts involving Shehbaz Sharif and Asim Munir, aimed at preventing a wider conflict.
The development marks a sharp shift from late March, when oil prices surged above $117 per barrel amid rising tensions, underscoring how geopolitical developments continue to drive volatility in global energy markets.
