Oil drops after US-Iran ceasefire

David Morrison

SENIOR MARKET ANALYST

08 Apr 2026

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Crude oil prices fell sharply overnight. The plunge came after President Trump agreed to suspend planned attacks on Iran for two weeks in exchange for Tehran allowing safe passage to all vessels passing through the Strait of Hormuz. The news eased immediate fears around one of the largest supply disruptions to crude oil supply in history.

Front-month Brent dropped to within a few cents of $90 per barrel, posting its lowest level in a month. Front-month WTI experienced a near-20% drop from the overnight highs to overnight lows. Both contracts have recovered a touch this morning but remain comfortably below $100 per barrel.

Source: TN Trader 

News of the ceasefire has been welcomed generally. But no one really knows what it will mean in practice. Two weeks is unlikely to be long enough to return to the level of shipping passing through the Strait of Hormuz pre-war.

Also, there’s the factor of repairing the damage done to the energy infrastructure of the Gulf States. But it’s been taken as a ‘win’ for now. Perhaps the best outcome for near-term oil prices is consolidation around current levels. 


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