DUBAI – Oil prices dropped sharply on Wednesday, slipping below the $100-per-barrel mark, after US President Donald Trump announced a tentative two-week ceasefire with Iran, contingent on the immediate and secure reopening of the Strait of Hormuz.
Brent crude fell $14.84, or 13.6%, to settle at $94.43 per barrel, while West Texas Intermediate (WTI) dropped $16.13, or 14.3%, to $96.82 per barrel as of 0023 GMT.
Earlier, Donald Trump has announced a two-week ceasefire with Iran, saying the decision follows discussions with Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir.
In a statement, President Trump said he agreed to halt imminent military action after being requested “to hold off the destructive force being sent tonight to Iran,” while also linking the pause to specific conditions involving Tehran.
He stated that the ceasefire is “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” a key global shipping route.
Describing the development as reciprocal, Trump said, “This will be a double sided CEASEFIRE,” adding that the United States would “suspend the bombing and attack of Iran for a period of two weeks.”
The US president said the pause comes after Washington believes it has achieved its strategic aims. “The reason for doing so is that we have already met and exceeded all Military objectives,” he said, expressing optimism about ongoing diplomatic efforts.
According to Trump, both sides are moving closer to a broader agreement. “We are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East,” he noted.
He also revealed that Iran had shared a proposal that could form the basis for future negotiations. “We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate,” he said.
Trump further claimed that most longstanding disputes have already been addressed. “Almost all of the various points of past contention have been agreed to between the United States and Iran,” he stated, adding that the two-week window would help finalize the deal.
“This will allow the Agreement to be finalized and consummated,” he said.
Pakistan invites US-Iran for ‘Islamabad Talks’ on April 10 for conclusive agreement
