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Oil Falls Below $100 as U.S. and Iran Agree to Two-Week Ceasefire to Reopen Hormuz

The truce removes part of the oil-risk premium for now.

Overview

  • The conditional pause, announced Tuesday night by President Trump after talks with Pakistani leaders, hinges on Iran reopening the Strait of Hormuz, a corridor that carries about one-fifth of global seaborne oil.
  • Iran’s foreign minister said safe passage will run for two weeks under coordination with its armed forces, and MarineTraffic reported early signs of vessel movement.
  • Oil benchmarks fell back below $100 as Brent dropped to about $94 and WTI to roughly $95, while U.S. stock futures jumped between about 2.5% and 3.5% and Bitcoin topped $72,000.
  • Energy stocks split as majors like Exxon and Chevron fell on cheaper crude while refiners such as Valero and Marathon gained on improved margins.
  • Analysts and officials called the truce fragile, and they warned that damaged facilities and slow verification mean tanker flows and pump prices may take weeks to stabilize.