Futures for international benchmark Brent crude were down about 12 percent to about $97 per barrel.
While oil prices are still higher than before the war with Iran, the massive drop suggests markets are optimistic about the president’s ceasefire announcement.
Trump said Tuesday that he would “suspend” attacks on Iran for two weeks, as long as Tehran agrees to keep the Strait of Hormuz open.
The strait, which is on Iran’s coast, is a key oil shipping channel, with about 20 percent of the world’s oil passing through it on an average day.
Since the start of the conflict, the strait has been mostly closed, with Iran threatening boats that cross through. This has sent oil prices soaring in recent weeks.
Read more about the ceasefire here, from The Hill's Mallory Wilson and read more about oil prices here, from me. |
Welcome to The Hill’s Energy & Environment newsletter, I'm Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.
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