Global oil markets saw a sharp sell-off of more than 15 percent after the United States and Iran agreed to a temporary two-week ceasefire, with Pakistan playing a key mediating role.
Brent Crude futures dropped nearly 16 percent, falling from $109.27 to $91.72 per barrel. At the time of reporting, Brent was trading around $94.7, still down over 13 percent. Meanwhile, West Texas Intermediate (WTI) declined by about 15 percent to around $95 per barrel.
The sharp decline came after diplomatic progress helped ease fears of prolonged supply disruptions. Pakistan’s intervention played a central role in bringing both sides to the negotiating table and securing a pause in hostilities.
Iranian Foreign Minister Seyed Abbas Araghchi announced that Tehran would allow safe maritime passage through the Strait of Hormuz for the next two weeks, a key factor behind the drop in oil prices given the route’s importance to global energy supply.
US President Donald Trump also confirmed that Washington would halt bombing operations during the ceasefire period, describing the arrangement as a “double-sided ceasefire.”
He added that major objectives had largely been achieved and suggested that both sides were moving closer to a broader agreement that could support longer-term regional stability.
The easing of tensions immediately reduced risk premiums in oil markets, which had surged during the conflict, leading to the steep correction in global crude prices.
