Oil prices plummet as U.S. and Iran reach breakthrough Hormuz truce
Oil prices dropped sharply on international markets after the United States and Iran reached a provisional two-week ceasefire. The deal includes the reopening of the Strait of Hormuz, a critical artery for global energy transit.
Brent crude fell by approximately 15% to $93 per barrel, while U.S. WTI lost over 15% to settle near $94. This represents one of the most significant single-day price corrections in recent years.
The market rally followed President Donald Trump’s announcement to suspend strikes on Iran in exchange for the temporary truce. Iranian Foreign Minister Abbas Araghchi confirmed that Tehran will allow safe vessel transit during this period.
Despite the sharp decline, prices remain significantly higher than the $70 per barrel levels seen before the conflict began in late February. The partial blockade of the Strait—where 20% of global oil passes—had previously triggered a massive supply shock.
Asian stock indices rose sharply as investors reacted to the de-escalation of regional tensions. However, analysts warn that this relief may be temporary without a long-term diplomatic resolution.
Energy experts noted that while the truce allows the movement of stalled shipments, it does not increase overall production. Future price stability depends on the success of continued negotiations and the safety of maritime traffic.
Translation by Iurie Tataru
