Global Oil Prices Plummet Following US-Iran Two-Week Ceasefire Agreement

Washington D.C. Global crude oil prices have seen a sharp decline following reports that US President Donald Trump has reached a two-week ceasefire agreement with Iran.

On Wednesday, the price of US West Texas Intermediate (WTI) crude oil fell by approximately $20 per barrel. Investors expressed relief after Trump announced that Iran had agreed to a ceasefire on the condition that the Strait of Hormuz would be opened immediately and safely.

The price of WTI crude for May delivery dropped by $18.10, or 16.02 percent, settling at $94.85 per barrel. During trading, the price dipped as low as $91.05, marking the lowest level since March 26.

Trump made this announcement shortly before the deadline he had set for Iran. Previously, he had warned that if Iran did not open the waterway, he would launch a massive attack on its civil infrastructure, stating that 'an entire civilization could be wiped out tonight.'

Iranian Foreign Minister Abbas Araghchi also issued a statement on Wednesday, clarifying that if attacks on Iran cease, they will also halt their retaliatory actions. He stated that, in coordination with the Iranian armed forces, safe passage through the Strait of Hormuz would be possible for two weeks. As 20 percent of the world's total oil supply is transported through this waterway, its closure had caused a severe crisis for the global economy.

Due to this conflict with Iran, oil prices had risen by more than 50 percent in March alone, the fastest rate in history. President Trump stated that he had received a 10-point proposal from Iran and that it could be considered a good basis for negotiations. While he claimed that both sides are nearing an agreement for long-term peace, market analysts have commented that many technical and political issues remain to be resolved.

Although this initial step has raised hopes for a path toward permanent peace, many challenges remain for the full implementation of the ceasefire.