Iran · CNBC Technology
U.S. crude oil posts biggest one-day drop since 2020 on U.S.-Iran ceasefire agreement
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Oil prices plunged Wednesday after the U.S. and Iran agreed to a two-week ceasefire that allows safe passage through the Strait of Hormuz, but the fragile agreement has not led to a breakthrough in tanker traffic so far.
Key facts
- U.S. West Texas Intermediate futures for May delivery fell more than 16% to close at $94.41 per barrel, their biggest one-day decline since April 2020 in the midst of the pandemic — We may see 10-15 [vessels] given that Iran is still vetting who goes through: that would be a similar pace to that seen in recent days," said Matt Smith, an oil analyst at Kpler
- About 20% of global oil supplies passed through the strait before the U.S. and Israel attacked Iran on Feb. 28
- The apparent ceasefire came less than two hours before Trump's 8 p.m
Summary
U.S. West Texas Intermediate futures for May delivery fell more than 16% to close at $94.41 per barrel, their biggest one-day decline since April 2020 in the midst of the pandemic. President Donald Trump said the two-week ceasefire was subject to Iran agreeing to a complete, immediate and safe opening of the Strait of Hormuz. "Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated," Trump said in a social media post.