TLDR
- Brent crude declined 13% to approximately $94 per barrel; WTI slid 15% to around $96 per barrel
- Washington and Tehran reached a two-week truce agreement Tuesday evening
- President Trump announced U.S. assistance in restoring shipping operations through the Strait of Hormuz
- Tehran’s Foreign Minister verified Iran would permit secure transit for vessels navigating the strait
- Approximately 20% of worldwide oil transport moves through the Strait of Hormuz
Global oil markets experienced a significant downturn Wednesday following the announcement of a two-week truce between Washington and Tehran, alleviating concerns about potential interruptions to worldwide petroleum supply chains.
Brent crude declined approximately 13% to reach $94.77 per barrel. West Texas Intermediate slid roughly 15% to settle at $96.23 per barrel. Trading sessions showed both benchmarks touching intraday lows beneath $92 per barrel during morning hours.
The agreement materialized Tuesday evening, moments ahead of President Trump’s established 8:00 p.m. Eastern time cutoff. During the days preceding this deadline, oil prices had climbed to multi-month peaks as traders anticipated potential conflict escalation.
Trump had previously cautioned that non-compliance might trigger devastating outcomes. He characterized the possible repercussions as a scenario where “a whole civilization could die.”
The Ceasefire Deal
Trump revealed the military pause through a Truth Social posting. He indicated that Washington had accomplished its primary strategic goals and that Tehran had presented a comprehensive proposal capable of establishing groundwork for broader negotiations.
Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push
U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iran’s agreement to the immediate, full, and… pic.twitter.com/npInV48tUR
— Wu Blockchain (@WuBlockchain) April 7, 2026
Tehran’s Foreign Minister Seyed Abbas Araghchi validated that the nation’s Supreme National Security Council approved the cessation of hostilities. He stated vessels would receive “safe passage” through the Strait of Hormuz, contingent upon the cessation of aggressive actions and proper coordination with Iranian maritime authorities.
Pakistan served as a crucial intermediary, facilitating dialogue between both parties during the critical hours approaching the deadline.
Trump characterized the truce as a “double-sided pause.” He emphasized the arrangement depends on Iran guaranteeing prompt restoration of strait access.
Hormuz Back Open
The Strait of Hormuz had remained largely inaccessible for multiple weeks throughout the hostilities. The waterway facilitates approximately 20% of worldwide petroleum transport, establishing it as among the planet’s most vital maritime corridors.
Trump shared on social media platforms Wednesday morning that Washington would provide “helping with the traffic buildup” through the waterway. His message stated: “There will be lots of positive action! Big money will be made. Iran can start the reconstruction process.”
The restoration of strait operations stands as the primary catalyst behind the dramatic market response. While the passage remained blocked, supply anxieties had elevated prices. The truce eliminated this immediate threat, though temporary in nature.
The agreed-upon pause extends for two weeks. Tehran verified it would guarantee safe vessel transit throughout this period, assuming all parties honor the agreement terms.
