Oil plummets as Trump announces Middle East ceasefire
Brent crude’s price has trailed below $100/bbl after US President Donald Trump announced a temporary ceasefire deal with Iran.
IMAGE: Getty Images
In a social media post carried by the White House, Trump said that Washington had agreed to a two-week conditional ceasefire.
The plunge in Brent’s price came immediately after Trump said that the US is suspending military operations in the region for two weeks, given that Iran reopens the Strait of Hormuz for commercial vessel transit.
“We received a 10-point proposal from Iran and believe it is a workable basis on which to negotiate,” Trump said.
Iran’s Foreign Minister Abbas Araghchi said on social media platform X that Tehran will cease attacks on commercial vessels and regional energy facilities, provided strikes against Iran are immediately halted.
“For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces,” Araghchi wrote.
Pakistan formally mediated the agreement, with its Prime Minister inviting representatives from both sides to Islamabad on Friday for talks aimed at reaching a final settlement.
According to oil market analysts, even if a ceasefire holds, geopolitical risks tied to the Strait of Hormuz are expected to remain elevated in the near term, given Iran’s continued control over the waterway.
“Further price direction will hinge on whether talks translate into a durable agreement and a sustained normalisation of flows through the strait, with volatility likely to persist during negotiations later this week,” two analysts from ING Bank said.
By Aparupa Mazumder
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