Global Oil Prices Plunge After Trump Announces Ceasefire with Iran

Global oil prices plummeted sharply on Tuesday evening (7 April 2026) local time after US President Donald Trump announced a temporary halt to military strikes against Iran for two weeks. This decision marks a temporary ceasefire in the conflict between the US and Iran, which had previously raised concerns about disruptions to global energy supplies. Trump stated that he agreed to stop attacks on Iran for two weeks. The announcement was made via social media about an hour and a half before the deadline he had set at 8:00 PM US time. Additionally, negotiations towards a long-term peace agreement in the Middle East are reportedly at an advanced stage. In response to the news, oil prices came under immediate pressure. Brent crude oil futures fell more than 16%, briefly touching $90.78 per barrel. Meanwhile, the US benchmark oil price, West Texas Intermediate (WTI), also dropped around 16% and was trading slightly above $94 per barrel. This sharp decline reflects the easing of market fears regarding potential oil supply disruptions due to the conflict in the Middle East region. Meanwhile, the Dow Jones Industrial Average index surged more than 900 points, reflecting investor optimism over the de-escalation of geopolitical tensions. Although the ceasefire is in place, risks in the region have not entirely disappeared. One critical point is the Strait of Hormuz, a vital route through which around 20% of the world’s oil supply passes. Trump stated that the halt in attacks also depends on Iran’s willingness to fully, safely, and promptly open the strait. He also revealed that the US has received a 10-point proposal from Iran, which is seen as a basis for negotiations towards a long-term conflict resolution. On the other hand, reports indicate that Iran previously rejected negotiations for a temporary ceasefire and was only willing to end the war completely under certain conditions, including compensation for damages. Throughout the conflict, US and Israeli strikes reportedly targeted Iranian military and energy facilities but avoided important civilian infrastructure such as power plants and bridges. Trump also issued a stern warning that if no agreement is reached, Iran risks suffering massive infrastructure damage.