Oil prices crater after Trump announces two-week ceasefire in US-Iran war
Oil futures fell Tuesday night after President Trump suspended his massive bombing campaign against Iran and announced a two-week ceasefire in the U.S.-Iran war.
In his statement on his Twitter account, Trump said, “I agree to suspend bombings and attacks against Iran for two weeks.” Real Social. “This will be a bilateral Armistice! The reason we are doing this is because we have already met and exceeded all Military objectives and are very close to a definitive Agreement on Long Term PEACE with Iran and PEACE in the Middle East,” he said on Tuesday evening, about an hour and a half before the 8pm deadline.
Brent crude oil futures (BZ=F), the international benchmark, fell over 16% to $90.78 per barrel. Futures for West Texas Intermediate (WTI) crude oil (CL=F), the US benchmark, also fell 16% to just over $94.
S&P 500 (ES=F) and tech-heavy Nasdaq 100 (NQ=F) futures rose around 2%, while Dow Jones Industrial Average (YM=F) contracts jumped more than 900 points..
While the two-week ceasefire continues, the Strait of Hormuz, through which 20 percent of the world’s oil supply passes, continues to be a matter of debate.
“Based on my conversations with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, they have requested that I stop the destructive force to be sent to Iran tonight, subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE and SAFE OPENING of the Strait of Hormuz,” Trump wrote.
He added that the United States “received a 10-point proposal from Iran and believes it is a viable basis for negotiations that will bring this long-term problem closer to a solution.”
This comes after President Trump posted on Truth Social Tuesday morning: “An entire civilization will die tonightwill never be brought back again. “I don’t want that to happen, but it probably will.”
The president also wrote in an op-ed that some viewed as the beginning of potential negotiations to avert strikes: “We now have Complete and Total Regime Change dominated by different, smarter and less radicalized minds, maybe it could be something revolutionary, WHO KNOWS?”
Before this evening, the Iranian leadership on Tuesday Withdrew from negotiation talks He did not want to discuss a temporary ceasefire, hoping only for a complete end to the war and payment of damage compensation, among other conditions, The New York Times reported.
