Oil & Gas

Oil prices fell sharply across global markets after Donald Trump announced a two-week ceasefire agreement with Iran that includes the reopening of the strategically vital Strait of Hormuz.

The announcement, shared on Truth Social, quickly eased fears of prolonged disruption in one of the world’s most critical oil transit routes, triggering an immediate reaction across energy markets.

U.S. crude prices dropped dramatically—falling about 18 percent to below $93 per barrel after earlier surging past $117 on the same day. This marked the steepest single-day decline since the Gulf War.

Other energy commodities also followed suit, with natural gas and heating oil prices declining, while Brent crude futures slipped around 6 percent to approximately $103.40 per barrel, though still higher than pre-conflict levels.

Financial markets responded positively to the de-escalation. U.S. stock futures surged, with Dow futures rising by 1,000 points, Nasdaq 100 futures climbing nearly 3 percent, and S&P 500 futures gaining over 2.5 percent. Meanwhile, bond markets showed signs of stabilization, as the yield on the 10-year U.S.

Treasury eased slightly to 4.24 percent. Despite the dip, yields remain elevated compared to pre-war levels, continuing to put upward pressure on borrowing costs for households and businesses.

The ceasefire follows weeks of volatility driven by fears that the conflict would severely disrupt oil flows through the Strait of Hormuz, a route that typically carries about 20 percent of the world’s oil supply. Iran has agreed to allow passage through the waterway under temporary conditions, while both the U.S. and Israel have committed to halting attacks during the ceasefire period.

Although the agreement has calmed markets for now, uncertainty remains over long-term stability, as negotiations continue over broader demands tied to sanctions, regional military presence, and Iran’s nuclear program.