Oil futures plummeted Wednesday morning after President Trump halted a broad bombing campaign on Iran and declared a two-week ceasefire in the US-Iran conflict.
Futures for Brent crude fell 14% to hover near $94 per barrel, while futures for the US benchmark, West Texas Intermediate crude, remained down more than 16%, trading around $94.
The President took to Truth Social to announce the ceasefire, stating: “Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE!”
“The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East. We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated.”
In a follow up post, Trump stated: “A big day for World Peace! Iran wants it to happen, they’ve had enough! Likewise, so has everyone else! The United States of America will be helping with the traffic buildup in the Strait of Hormuz. There will be lots of positive action! Big money will be made. Iran can start the reconstruction process. We’ll be loading up with supplies of all kinds, and just “hangin’ around” in order to make sure that everything goes well. I feel confident that it will. Just like we are experiencing in the U.S., this could be the Golden Age of the Middle East!!! President DONALD J. TRUMP”
Iran’s foreign minister, Abbas Araghchi, confirmed acceptance of the temporary truce in a statement shortly after Trump’s post. He stated that if attacks on Iran are stopped, Iran will cease its operations, and that “for two weeks, safe passage through the Strait of Hormuz will be possible through coordination with Iran’s Armed Forces.”
Approximately 20% of the world’s oil shipments traveled through the Strait before the U.S. and Israel launched their attack on Iran on February 28.
By CEO NA Editorial Staff
