Global oil prices crashed dramatically on Wednesday, April 8, 2026, after President Donald Trump announced a conditional two-week ceasefire with Iran that includes the full reopening of the strategic Strait of Hormuz .
WTI Crude plunged over 15% to around $93.80 per barrel, marking its steepest single-day drop in nearly six years. Brent crude, the international benchmark, fell as much as 16% to $92.30 before stabilizing near $94-95 per barrel .
Ceasefire Terms Drive Market Relief
Trump announced the agreement on Truth Social just hours before his 8:00 PM ET deadline, stating he had agreed to “suspend the bombing and attack of Iran for a period of two weeks” contingent on Tehran’s “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz” .
Iranian Foreign Minister Abbas Araghchi confirmed that Tehran would halt its “defensive operations” if attacks ceased, and that safe passage through the strait would be ensured through coordination with Iranian armed forces .
From $70 to $110 and Back
Oil prices had surged from around $70 per barrel before the war began on February 28 to highs above $110 in early April as Iran effectively closed the Strait of Hormuz—the narrow waterway through which roughly one-fifth of the world’s oil supply normally passes .
Refined Products and Global Markets Follow
European diesel futures fell as much as 23%, marking their largest decline in more than four years. Futures linked to Abu Dhabi’s Murban crude dropped 19%—the sharpest fall since the contract’s launch in 2021 .
Global stock markets surged on the news:
- Japan’s Nikkei 225 gained over 5%
- South Korea’s Kospi jumped nearly 6%
- Hong Kong’s Hang Seng rose 3%
- Brussels exchange opened 3% higher
Analysts Warn: Ceasefire Is Fragile
Despite the dramatic price drop, analysts caution that the ceasefire is temporary and markets remain vulnerable.
“The move below $100 is largely positioning being stripped out… Without concrete de-escalation around the Strait of Hormuz, the risk of another spike remains very much alive,” said Stephen Innes, managing partner at SPI Asset Management .
Oil prices remain significantly higher than pre-war levels of around $70 per barrel, and the ceasefire does not resolve core issues. Infrastructure damage across the region could take months or years to repair, with Rystad Energy estimating costs exceeding $25 billion .
What Comes Next?
Negotiations are scheduled to begin Friday, April 10, in Islamabad, hosted by Pakistan. The talks will focus on finalizing a long-term framework agreement .
As one analyst noted: “Restoration would be gradual. What the market wants is certainty that the conflict will end and businesses can resume. The prevailing condition is highly fluid. Hence, expect crude oil prices to remain volatile in the near term” .
