Oil prices fall after Trump announces ceasefire
International crude oil prices registered a fall in the last hour after US President Donald Trump announced a conditional two-week ceasefire in the conflict with Iran.
TL;DR
- International crude oil prices fell after US President Donald Trump announced a conditional two-week ceasefire with Iran.
- The decision is linked to the reopening of the Strait of Hormuz, through which approximately 20% of the world's oil transits.
- The US cited achieving major military objectives against Iran as the reason for the ceasefire, but warned of resuming operations if the Strait is not reopened.
- The Strait of Hormuz is critical for the global economy, with about 20 million barrels of crude oil passing through daily.
- The previous blockage of the Strait had driven up fuel prices in the US, a sensitive issue for the Trump administration ahead of midterm elections.