Global Oil Prices Plummet Following US-Iran Ceasefire

Jakarta – Global oil prices have fallen sharply following the United States and Iran’s agreement on a temporary two-week ceasefire, which also encompasses the reopening of the strategic Strait of Hormuz.

According to the BBC on Wednesday, 8 April 2026, the global benchmark Brent crude was recorded dropping around 13% to US$94.80, equivalent to Rp1,611,600 per barrel (at an exchange rate of Rp17,000). Meanwhile, oil traded in the United States plummeted more than 15% to US$95.75, or approximately Rp1,627,750 per barrel.

This decline comes after energy prices had previously surged sharply due to supply disruptions from the Middle East. The conflict, which began on 28 February, had previously driven oil prices well above normal levels, from around US$70 or approximately Rp1,190,000 per barrel.

The ceasefire essentially occurred after the United States declared it would halt attacks on Iran for two weeks, on the condition that Tehran fully, immediately, and safely opens the Strait of Hormuz. Iran responded by expressing its willingness to cease the conflict if attacks on its territory were stopped, while also opening the shipping lane in the strait.

This agreement has immediately alleviated market concerns over disruptions to global energy distribution. The Strait of Hormuz itself is a vital route through which a significant portion of the world’s oil shipments pass, so any disturbances in the area have a major impact on energy prices.

Previously, Iran had threatened to attack ships passing through the strait in retaliation for airstrikes from the US and Israel. This threat caused many tanker ships to be held back and triggered a surge in global oil and gas prices.

Nevertheless, analysts assess that the current price drop does not fully reflect a recovery in conditions. Oil prices are still higher than before the conflict, indicating that the market retains concerns about long-term stability.

Risks also stem from the potential damage to energy infrastructure in the region. Attacks during the conflict have targeted various oil facilities and industries in that energy-rich area.

Even the repair of infrastructure is estimated to take a long time and incur significant costs. Rystad Energy estimates that the total recovery cost could exceed US$25 billion, or around Rp425 trillion, with repair times that could take up to several years.