Finance
US Crude Futures Fall $12.04 to $100.90/bbl After Trump Announces Two Week Ceasefire
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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U.S. crude oil (WTI) plunged by $12.04 (10.7%) to $100.90 per barrel early April 8, 2026, after President Trump announced a two‑week ceasefire with Iran contingent on reopening the Strait of Hormuz, easing fears of a wider supply disruption.
US crude slumps below $100 after Trump announces two-week ceasefire
Market Reaction and Geopolitical Developments
By Helen Clark
Crude Oil Price Drop
PERTH, April 8 (Reuters) - U.S. West Texas Intermediate crude fell by nearly $20 per barrel on Wednesday after U.S. 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 $18.10, or 16.02%, to $94.85 per barrel as of 2320 GMT, after hitting $91.05, the lowest since March 26.
Strait of Hormuz and Oil Transit
The announcement came shortly before his deadline for Iran to open the Strait of Hormuz, where 20% of the world’s oil transits, or face widespread attacks on its civilian infrastructure.
Announcement Details
The announcement was made on social media, where he had previously said on Tuesday "a whole civilization will die tonight" if his demands were not met.
Iran's Response and Ceasefire Terms
Iranian Statement
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.
Historical Oil Price Surge
The U.S.-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50%.
Negotiation Prospects
10-Point Proposal
Trump said the U.S. 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.
Analyst Commentary
"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.
(Reporting by Helen Clark; Editing by Chris Reese and Jamie Freed)
Key Takeaways
- •The drop marks one of the sharpest intra‑day WTI moves this year amid intensifying Iran conflict.
- •The Strait of Hormuz is a critical chokepoint—~20% of global seaborne oil flows through it—so any ceasefire easing transit risks can sharply affect oil prices.
- •Markets have been highly sensitive to diplomatic developments: even ahead of this, WTI fell ~4% in late March on ceasefire hopes, illustrating volatility tied to the conflict news cycle.
Frequently Asked Questions about US crude futures fall $12.04 to $100.90/bbl after Trump announces two week ceasefire
1Why did US crude futures fall over $12 per barrel?
US crude futures dropped over $12 due to President Trump's announcement of a two-week ceasefire with Iran.
2What is the new price of US WTI crude oil after the announcement?
WTI crude oil for May delivery fell to $100.90 per barrel following the announcement.
3How much did US WTI crude oil prices drop in percentage terms?
WTI crude prices declined by 10.66% after the ceasefire news.
4Which region's oil transit was highlighted in the announcement?
The Strait of Hormuz, where 20% of the world’s oil transits, was highlighted.
