Petroleum prices plunged Wednesday after U.S. President Donald Trump agreed to suspend attacks on Iran for two weeks in exchange for Tehran allowing safe passage through the Strait of Hormuz.
U.S. West Texas Intermediate futures with May delivery fell about 18% to $92.50 per barrel mid-Wednesday morning. International benchmark Brent crude futures with June delivery lost more than 16% to $91.25 per barrel.
The WTI could log its worst daily performance since April 27, 2020 if it settles more than 14.5% lower.
Trump said the two-week ceasefire was subject to Iran agreeing to a complete, immediate and safe opening of the Strait of Hormuz. The U.S. has received a 10-point proposal from Iran that is a workable basis for negotiations, he said.
“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.
Iranian Foreign Minister Seyed Abbas Araghchi said Tehran will allow safe passage through the Strait during the ceasefire via “coordination with Iran’s Armed Forces and with due consideration to technical limitations.”
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