Oil Prices Drop Following Trump's Conditional Ceasefire with Iran

Wed Apr 08 2026 03:26:49 GMT+0000 (Coordinated Universal Time)

Global oil prices plummet after President Donald Trump reaches a conditional ceasefire agreement with Iran, intending to allow free passage through the vital Strait of Hormuz.

Oil prices have declined significantly following U.S. President Donald Trump's announcement of a two-week ceasefire with Iran, which hinges on the opening of the Strait of Hormuz for vessel traffic. Brent crude oil saw a decrease of approximately 15.9%, while U.S. trade saw a nearly 16.5% drop, although prices remain elevated compared to pre-conflict levels. The announcement was made amidst escalating tensions due to Iranian threats against shipping in the region.

Global oil prices have fallen sharply since President Donald Trump announced a two-week ceasefire between the US and Iran if vessels are allowed to move through the key Strait of Hormuz waterway.

The price of benchmark Brent crude fell about 15.9% to $92.30 (£68.87) a barrel, while US-traded oil was almost 16.5% lower at $93.80.

But prices remain higher than before the conflict started on 28 February.

The cost of energy has jumped as oil and gas supplies from the Middle East have been severely disrupted by Iranian threats to attack ships trying to use the strait in retaliation for US and Israeli airstrikes.

In a social media post on Tuesday evening, Trump said: I agree to suspend the bombing and attack of Iran for a period of two weeks... subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.

He had set a deadline for 20:00 EDT on Tuesday (00:00 GMT on Wednesday), threatening that a whole civilisation will die tonight if no deal was reached.

Despite his threats, Trump was likely to be wary about letting energy prices skyrocket by escalating the conflict, said Xavier Smith from market research firm AlphaSense.

That could have led to a self-inflicted economic wound that few would risk, especially given the looming pressure of approval ratings on Trump's leadership, said Smith.

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