Oil slides after Trump agrees to conditional two-week Iran ceasefire
Following President Donald Trump’s announcement of a two-week ceasefire between the US and Iran, global oil prices dropped significantly. The benchmark Brent crude fell by approximately 15.9%, reaching $92.30 (£68.87) per barrel, while US-traded oil dropped nearly 16.5%, hitting $93.80. Prices, however, remain elevated compared to pre-conflict levels, which began on 28 February.
The energy market has seen a surge in costs due to disruptions in oil and gas supplies from the Middle East, caused by Iranian threats targeting ships using the vital Strait of Hormuz. In a social media statement on Tuesday evening, Trump outlined his conditional agreement: “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.”
Despite his warnings, Trump may have been cautious about allowing energy prices to rise further by intensifying the conflict, noted Xavier Smith of market research firm AlphaSense. This could result in a “self-inflicted economic wound” that few would willingly accept, particularly with the pressure of approval ratings affecting his leadership, according to Smith.
