Oil Prices Drop Below $100 After Iran Ceasefire
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- Oil prices dropped sharply, with Brent crude falling about 13% to $95 a barrel and WTI down 14% to $96, following President Trump's announcement of a U.S.-Iran ceasefire.
- Trump stated the U.S. agreed to a two-week ceasefire with Iran, contingent on Iran allowing the 'complete' reopening of the Strait of Hormuz, a critical waterway for global oil trade.
- Iran's foreign minister, speaking for the Supreme National Security Council, confirmed passage through the Strait of Hormuz 'will be possible via coordination with Iran's Armed Forces,' though no specifics on conditions were given.
- Dated Brent, the benchmark for physical oil, hit a record $144.42 during the conflict, surpassing the 2008 high, as Middle East producers cut output due to blocked export routes.
- Marathon Petroleum Corp's Los Angeles Refinery was featured as a visual representation of U.S. refining infrastructure amid the global oil market disruption.
Why it matters: The 13–14% price drop signals a rapid shift in energy market risk perception, directly tied to geopolitical de-escalation. With 7.5 million barrels per day of production offline and the Strait of Hormuz still requiring Iranian coordination for access, any resumption of shipping depends entirely on Tehran's actions, making shipper confidence the key variable in restoring global supply.
