US crude slumps below US$100 after Trump announces two-week ceasefire
The US-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50 per cent.
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PERTH: US West Texas Intermediate crude fell by nearly US$20 per barrel on Wednesday (Apr 8) after US President Donald Trump said he had agreed to a two-week ceasefire with Iran that was subject to the immediate and safe reopening of the Strait of Hormuz.
WTI crude for May delivery fell US$18.10, or 16.02 per cent, to US$94.85 per barrel as of 11.20pm GMT Tuesday (7.20am, Wednesday, Singapore time), after hitting US$91.05, the lowest since Mar 26.
The announcement came shortly before Trump's deadline for Iran to open the Strait of Hormuz, where 20 per cent of the world’s oil transits, or face widespread attacks on its civilian infrastructure.
The announcement was made on social media, where he had previously said on Tuesday "a whole civilisation will die tonight" if his demands were not met.
Iran said it would halt its attacks if attacks against it stopped and that safe transit through the Strait of Hormuz would be possible for two weeks in coordination with Iranian armed forces, according to a statement by Foreign Minister Abbas Araqchi on Wednesday.
The US-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50 per cent.
Trump said the US had received a 10-point proposal from Iran, which he called a workable basis to negotiate, and said the parties were very far along on reaching a definitive agreement for long-term peace.
"It's a good start and could pave the way to a more permanent reopening - but lots of ifs still to work out," IG analyst Tony Sycamore wrote in a note.
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