Oil prices plummeted Wednesday following a two-week ceasefire agreement between the U.S. and Iran. Brent crude fell 13% to $95.36 per barrel. U.S. crude futures dropped approximately 15% to $96.31. This decline erased six weeks of gains triggered by the conflict and the closure of the Strait of Hormuz.
The agreement arrived hours before a U.S. deadline for Iran to reopen the waterway. Global financial markets launched a relief rally as supply disruption fears eased.
The de-escalation pressured the energy sector, which was previously the top-performing market segment year-to-date. The VDE ETF and major holdings like Exxon Mobil and Chevron faced immediate uncertainty. Reopening the Strait of Hormuz could return millions of barrels of daily supply to the market.