Noida, Apr (APAC Media): Global oil prices tumbled on Wednesday, with crude benchmarks tumbling sharply after the United States and Iran agreed to a two‑week ceasefire, easing fears of a prolonged conflict in West Asia and sparking a market reaction.
Therefore, brent crude futures fell sharply by nearly 16%, settling at around $90–$95 per barrel, while US West Texas Intermediate (WTI) dropped approximately 18–20%, slipping below $95 per barrel amid volatile trading.
The decline represented one of the steepest single‑day falls in oil prices for years, undoing much of the recent rally that had pushed crude above $110 per barrel.
“We have agreed to a temporary two‑week ceasefire with Iran, which includes a commitment to reopen safe passage through the Strait of Hormuz,” President Donald Trump said.
The stock markets responded positively to the news, with Asian equities and key Indian indices rallying sharply as investor confidence improved amid lower conflict risks. Currency markets also showed signs of stabilising, reflecting eased pressures from the recent oil price volatility.
“This is a positive step towards easing tensions in the region and ensuring stability in global oil markets,” Trump added.
However, analysts warned that the respite may be short‑lived, as the ceasefire lasts only two weeks and depends on full cooperation from both sides. If negotiations break down or the Strait of Hormuz remains only partially open, concerns over oil supply could quickly return, driving renewed market volatility.
Separately, reports indicate that a longer, 45‑day ceasefire plan involving regional mediators is under discussion, seeking a more substantial halt to hostilities that could lay the groundwork for lasting peace and greater stability in energy markets.
At present, traders and policymakers are keeping a close eye on diplomatic developments, assessing whether the temporary lull can lead to a lasting easing of tensions and help stabilise energy prices while supporting the global economic recovery.
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