Oil fell below $100 per barrel on Wednesday after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran that was subject to the immediate and safe reopening of the Strait of Hormuz.
Brent futures fell $14.51, or 13.3%, to $94.76 a barrel at 0330 GMT, while WTI slid $17.16, or 15.2%, to $95.79 a barrel.
Trump’s turnaround came shortly before his deadline for Iran to open the Strait of Hormuz, where 20% of the world’s oil transits, or face widespread attacks on its civilian infrastructure.
“This will be a double sided CEASEFIRE!” he wrote on social media, after posting earlier on Tuesday that “a whole civilization will die tonight” if his demands were not met.
Iran said it would halt its attacks if attacks against it stopped and that safe transit through the Strait of Hormuz would be possible for two weeks in coordination with Iranian armed forces, according to a statement by Foreign Minister Abbas Araqchi on Wednesday.
However, multiple Gulf states have identified missile launches and drone attacks or issued warnings to civilians to take shelter.
