Oil crashes 16%, hits $94.52, steepest fall in five years

Global Oil Market – (Web Desk) – Following the U.S.-Iran ceasefire announcement, oil prices experienced their biggest one-day drop in over five years. Crude fell sharply, with prices dropping 16% to below $100 per barrel. West Texas Intermediate (WTI) settled at $94.53 per barrel, down $18.43, while Brent crude slid $15.54 to $93.73.

The stock market responded positively, with the Dow Jones jumping 1,200 points, the S&P 500 rising 2.7%, and Nasdaq futures gaining 3.4%. Energy stocks largely mirrored the trend, though some major players faced losses: Exxon Mobil fell 6%, and Chevron dropped 4.6% as oil prices tumbled.

According to analysts, the price of gas is set to fall at the pump if prices drop at wholesale levels, but there still remains a huge backlog.

Trump pledges US help in Strait of Hormuz

Although the ceasefire prevented President Trump from carrying out any threats to strike Iranian facilities, the two-week period provides only temporary relief.

Iran has indicated the possibility of collecting transit fees between $1 million and $2 million for each tanker, which would increase oil prices by about $1 per barrel.