Fears of a blockade of the Strait of Hormuz had driven oil prices higher earlier, but those concerns eased with news of de-escalation.
Crude oil prices slumped more than 4% on Wednesday after U.S. President Donald Trump declared a ceasefire between Israel and Iran, ending the brief but intense 12-day conflict.
Brent crude fell to $68.78, while West Texas Intermediate dropped to $65.81, reversing gains made after Iran’s missile strike on a U.S. base in Qatar earlier this week.
Trump announced the ceasefire via Truth Social, saying: “The ceasefire is now in effect. Please do not violate it!” He praised both nations for ending “THE 12 DAY WAR.”
Iran’s state media confirmed the ceasefire, though Foreign Minister Abbas Araqchi warned the “final decision” on ending military operations was still pending.
The ceasefire followed a call between Trump and Israeli Prime Minister Netanyahu, who agreed to halt strikes if Iran reciprocated, according to Reuters.
Fears of a blockade of the Strait of Hormuz had driven oil prices higher earlier, but those concerns eased with news of de-escalation.