Oil prices tumble sharply on two-week US-Israel-Iran ceasefire: WTI drops 13%, Brent down 15%

Oil futures tumbled sharply on Wednesday as President Donald Trump announced a two-week suspension of US attacks on Iran and progress toward a long-term peace agreement, easing fears of prolonged disruption to Middle East energy supplies.

West Texas Intermediate (WTI) crude for near-term delivery fell $17.26 to $95.69 a barrel, a 15.28% drop, according to oilprice.com data.

Brent Crude, the international benchmark, dropped 13.14%, or $14.36, to $94.91 as of 12.18pm (Tokyo) on Wednesday, from $109.27 as of 8:42 am (Tokyo) on Wednesday.

Murban crude slid 18.85% to $96.78, shaving $22.48 on Wednesday so far, while some longer-dated or alternative baskets such as Urals were flat on varying delivery and quality factors.

The sharp decline in WTI and Brent reflected relief after Trump said he agreed to the pause following talks with Pakistani leaders.

The move hinges on Iran’s “complete, immediate and safe” reopening of the Strait of Hormuz, a critical chokepoint for roughly one-fifth of global seaborne oil.

Heating oil plunged 17.96% and gasoline futures dropped 10.21%, signaling expectations of restored supply flows.

Natural gas also eased 4.46%.

Other regional grades showed mixed moves.

The OPEC Basket held steady at $110.63.

The sell-off came hours after Trump’s Truth Social post, in which he cited a 10-point Iranian proposal as a “workable basis” for negotiations and said military objectives had already been met and exceeded.

Analysts said the immediate market reaction underscored how tightly prices had been linked to Hormuz risks in recent weeks.

A sustained reopening would likely bring further downside, though verification of compliance and broader regional stability remain uncertain.

Data as of 12.18 pm Tokyo time on April 8 (Wednesday).

Trading volumes and exact settlement levels may shift as U.S. and European markets react.