Global Oil Prices Plunge 16% After Trump Delays Attack on Iran
NEW YORK, KOMPAS.com - Crude oil prices plummeted on Tuesday (7 April 2026) evening local time, after US President Donald Trump agreed to suspend attacks on Iran for two weeks, in exchange for Tehran permitting safe passage through the Strait of Hormuz.
As quoted from CNBC on Wednesday (8 April 2026), West Texas Intermediate contracts for May delivery fell more than 16 per cent to $94.47 per barrel at 8.03 pm local time. Meanwhile, the international Brent Crude benchmark for June delivery dropped more than 15 per cent to $92.21 per barrel.
Trump stated that the two-week ceasefire depends on Iran’s willingness to fully, immediately, and safely open the Strait of Hormuz. He also mentioned that the United States has received a 10-point proposal from Iran that could serve as a basis for negotiations.
Iranian Foreign Minister Seyed Abbas Araghchi stated that Tehran would allow safe shipping in the Strait of Hormuz during the ceasefire period through “coordination with the Iranian Armed Forces and considering technical limitations.”
“If attacks on Iran are halted, our strong Armed Forces will cease their defensive operations,” Araghchi said.
The ceasefire was reached less than two hours before the 8.00 pm deadline set by Trump for Iran to reopen the Strait of Hormuz. The President had previously threatened to bombard every bridge and power plant in Iran if the deadline was not met.
Trump’s rhetoric had even escalated sharply on Tuesday morning, when he threatened to destroy the entire Iranian civilisation.
“The entire civilisation will die tonight, it will never come back,” Trump wrote in a previous post.
“I don’t want that to happen, but it is very likely to happen.”
Trump said he approved the ceasefire after discussing it with Pakistan’s Prime Minister Shehbaz Sharif. Sharif asked Trump to delay the deadline to allow room for continued negotiations, while also urging Iran to reopen the Strait of Hormuz as a gesture of good faith.
Oil exports through the Strait of Hormuz had previously plummeted due to Iranian attacks on commercial ships, triggering the largest crude oil supply disruption in history.
Around 20 per cent of global oil supplies pass through the strait before the United States and Israel attacked Iran on 28 February. The narrow sea route serves as the main link between producers in the Persian Gulf and global markets.
Crude oil, jet fuel, diesel, and petrol prices surged during the ongoing conflict. Oil company executives and analysts warned that fuel shortages would spread worldwide if the Strait of Hormuz is not fully reopened.