Oil prices plunge after US-Iran ceasefire deal

Oil prices fell below $100/barrel after a US-Iran ceasefire reopened the Strait of Hormuz, easing concerns over global oil supply and boosting market optimism.

Global crude oil prices have sharply declined following a two-week ceasefire agreement between the US and Iran. Under this deal, Iran will immediately and safely reopen the Strait of Hormuz for oil transport, a critical route for global energy supplies. WTI oil prices dropped nearly $20, falling below $100 per barrel—the lowest level since late March. Brent crude also experienced a significant decline, at times trading between $91 and $95 per barrel. The agreement was announced just before the US-imposed deadline, easing fears of potential disruptions to the global oil supply. Iran has pledged to ensure the safety of shipping routes through the Strait of Hormuz during the ceasefire. Both the US and Iran have confirmed progress toward a longer-term agreement, sparking optimism in financial markets as investors anticipate a temporary easing of geopolitical tensions and reduced pressure on global energy supplies.