Oil Prices Plunge Below US$100, Market Reverses Direction

Jakarta, CNBC Indonesia - Global oil prices plummeted sharply during trading on Wednesday morning (8/4/2026) Indonesian time, dragging prices back below the psychological US$100 per barrel level. According to Refinitiv, as of 09.40 WIB, Brent was at US$95.22 per barrel, while WTI stood at US$96.39 per barrel. This decline felt stark in contrast to the previous day’s positions. On Tuesday (7/4/2026), Brent was still at US$109.27 and WTI at US$112.95. That means, in less than 24 hours, prices corrected by more than US$14 per barrel. This movement erased the gains that had formed since the end of March. On 31 March, Brent had touched US$118.35, then held above US$109 throughout early April. Now, the entire surge has vanished in one swift correction phase. The main trigger came from geopolitical developments in the Middle East. Donald Trump approved the cessation of attacks on Iran for two weeks. That agreement was accompanied by Tehran’s commitment to open a safe passage in the Strait of Hormuz. The market responded quickly. Previously, the risk of supply disruptions from the region had driven prices high. Around 20% of global oil supply passes through the Strait of Hormuz, so every direct threat is reflected in prices. With that route now promised to be safe, the risk premium evaporated immediately. Oil contracts fell more than 15% in international trading after the ceasefire announcement emerged. Before the agreement was reached, the situation had heated up. Threats of major attacks and disruptions to commercial ships caused oil flows to be interrupted. It was even described as one of the largest supply disruptions in history. Now, the market’s direction depends on on-the-ground implementation. If the Hormuz route truly returns to normal, downward price pressure remains open. However, if the agreement wavers, volatility could re-emerge in a short time.