Oil Slides Below $100 as Trump Announces Two-Week Ceasefire Tied to Reopening Hormuz

Overview

• President Trump announced a two-week ceasefire Tuesday that requires Iran to reopen the Strait of Hormuz, a chokepoint that carries about one-fifth of the world’s seaborne crude.
• Following the announcement, Brent fell to $96.73 and WTI dropped to $95.45, pulling prices back below $100 after weeks of conflict-driven spikes.
• U.S. stock futures jumped, with S&P 500, Dow, and Nasdaq futures up 2.7%, 2.6%, and 3.4% respectively, and major airlines surged 10% to 12% on the prospect of cheaper fuel.
• Energy producers slumped in premarket trading, with Exxon down 6.3%, Chevron off 4.8%, and Occidental down 8.5%, while refiners such as Valero, Phillips 66, and Marathon stand to gain from lower crude costs.
• Analysts urged caution because the pause is brief, Iran said passage will run under military management for two weeks, and investors are watching whether tanker traffic and shipments actually normalize.