Global oil markets reacted sharply after the ceasefire agreement between the United States and Iran, with prices plunging as much as 16–17% in immediate trading.
Brent crude dropped from above $110 to around the low $90 range, while WTI crude fell from roughly $113 toward the mid $90s, marking one of the sharpest single session declines in recent weeks.
The selloff follows the “double sided CEASEFIRE” announced by U.S. President Donald Trump and Iran’s agreement to halt operations and allow coordinated safe passage through the Strait of Hormuz for two weeks.
The Strait, which handles about 20% of global oil supply, had been a major flashpoint driving prices above $110 amid fears of disruption.
The sharp drop reflects a “relief rally” as fears of escalation ease, though markets remain volatile due to the temporary and conditional nature of the agreement.
Prices may continue to swing depending on Iran’s compliance, actual reopening of shipping routes, and progress in ongoing negotiations.
