Oil prices fell on April 14 following news of potential diplomatic negotiations. President Donald Trump announced that Iranian officials reached out to restart peace talks.
West Texas Intermediate (WTI) crude dropped below $98 per barrel. This reversal followed a price surge on April 13 caused by a U.S. naval blockade of the Strait of Hormuz. Brent crude had previously climbed above $102 per barrel amid fears of military conflict.
The prospect of a ceasefire eased market fears regarding global supply chains. The Strait of Hormuz facilitates the transit of 20% of global oil supplies. These geopolitical developments directly impacted sentiment for the energy sector and ETFs like VDE.