Oil Dives As Ceasefire Eases Hormuz Fears

By Staff, Agencies

Crude oil prices plunged Wednesday as global markets rallied following news of a two‑week US‑Iran ceasefire, easing fears of prolonged disruption to supplies through the Strait of Hormuz.

Under the terms of the temporary truce, Tehran will allow the safe passage of vessels through the Strait of Hormuz under its coordination, guaranteeing continued maritime traffic while maintaining military and technical oversight.

As a result, the ceasefire sent oil tumbling, with WTI down 16% to $94.47 and Brent falling 15% to $92.21 per barrel.

Importantly, the Strait of Hormuz, a chokepoint carrying roughly one‑fifth of global oil and gas supplies, highlights Iran’s strategic leverage over energy markets and global supply amid ongoing tensions.

Meanwhile, the ceasefire announcement pushed equities sharply higher, with markets in Seoul, Tokyo, Taipei, Sydney, Hong Kong, Shanghai, Singapore and Wellington all posting notable gains as investors bet the US‑“Israeli” war on Iran may be winding down.

Diplomatically, Iran achieved a major victory, declaring a two-week ceasefire with the US if attacks stop. The truce reflects Tehran’s 10-point demands, including non-aggression guarantees, control of the Strait of Hormuz, sanctions relief, UN resolution terminations, US troop withdrawal, and an end to fighting on all fronts, including Lebanon.

However, whereas the ceasefire stated that hostilities against regional allies would be included, "Israel" quickly violated the agreement by launching multiple airstrikes on Lebanon on Wednesday morning.