Global oil prices dropped sharply below $100 per barrel on Wednesday following the announcement of a two-week ceasefire with Iran by Donald Trump.
Brent crude fell by $14.84, or 13.6%, to trade at $94.43 a barrel, while West Texas Intermediate (WTI) declined by $16.13, or 14.3%, to $96.82 a barrel as of 00:23 GMT.
The steep decline comes after heightened market tensions in recent weeks over the potential disruption of global oil supplies.
Trump’s announcement marked a significant shift in stance, coming just ahead of a deadline he had reportedly set for Iran to reopen the strategically critical Strait of Hormuz.
The waterway is one of the world’s most important oil transit routes, accounting for roughly 20% of global oil shipments. Analysts say fears of supply disruptions through the strait had previously driven prices higher.
Markets reacted swiftly to the easing of geopolitical tensions, with the ceasefire raising hopes of stability in global energy supply chains.