Brent Crude Oil Price Falls 15% Below $100 Following US-Iran Ceasefire Agreement

With Brent falling 15%, oil prices fell sharply on Wednesday amid a temporary ceasefire between the United States and Iran, which could pave the way for negotiations to end tensions in the Middle East.

Brent crude oil prices fell below $100 a barrel on international futures markets at 0000 GMT on Wednesday after US President Donald Trump announced that a two-week mutual ceasefire had been agreed with Iran provided the Strait of Hormuz was fully reopened.

After rising as high as $111.80 on Tuesday, Brent crude ended trading at $109.27 a barrel. At 0634 GMT, the price of Brent crude futures stood at $92.98, marking a decline of around 15% from the previous close.

At the same time, West Texas Intermediate (WTI) crude traded at $96.67 per barrel. The price drop was driven by Trump’s announcement of a two-week mutual ceasefire with Iran, contingent on the full reopening of the Strait of Hormuz.

In a post on his Truth Social account, Trump said Pakistan-brokered talks had produced positive results just hours before the deadline set for Iran expired.

Trump, noting that the United States received a 10-point proposal from Iran, described it as a basis for negotiations and said the sides are very close to reaching a final agreement aimed at long-term peace.

Iranian authorities, for their part, said they would stop their attacks if the attacks against them stopped. Iranian Foreign Minister Abbas Araghchi said that, in coordination with the Iranian armed forces, safe passage through the Strait of Hormuz will be guaranteed for two weeks.