US crude slumps below US$100 after Trump announces two-week ceasefire
Why it matters: US crude oil prices dropped by US$18.10 per barrel, or 16.02 percent, impacting global energy markets.
- US West Texas Intermediate crude fell by nearly US$20 per barrel to US$94.85 after Trump's announcement, marking its lowest point since March 26.
- US President Donald Trump announced a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz, after previously threatening severe attacks.
- Iran's Foreign Minister Abbas Araqchi stated Iran would halt attacks and allow safe transit through the Strait of Hormuz for two weeks, coordinating with Iranian armed forces.
- The US-Israeli war with Iran caused the steepest monthly oil price rise in history during March, exceeding 50 percent.
- Trump indicated the US received a 10-point proposal from Iran, which he called a workable basis for negotiating a definitive agreement for long-term peace.
- IG analyst Tony Sycamore noted this ceasefire is a good start that could lead to a more permanent reopening, but many 'ifs' remain.
US crude oil prices plummeted below US$100 per barrel after President Trump announced a two-week ceasefire with Iran, contingent on the immediate reopening of the Strait of Hormuz. This development follows a historic 50% surge in oil prices during March due to the US-Israeli-Iran conflict, with Iran agreeing to the ceasefire and safe transit through the Strait.
