The United States and Iran agreed to a two-week conditional ceasefire late Tuesday. This agreement halts a month-long military conflict. The deal requires the immediate reopening of the Strait of Hormuz. This transit route handles 20% of global oil supply. Formal negotiations begin this Friday in Pakistan.
Brent crude plunged 16% to below $92 per barrel. This move represents the largest single-day drop since 1991. West Texas Intermediate fell over 15% to approximately $96 per barrel. Prices previously peaked above $110 per barrel during the conflict.
Energy stocks faced heavy sell-offs in early trading. Shares of ExxonMobil, Chevron, and ConocoPhillips plunged. Analysts estimate full supply normalization could take months. The market remains volatile despite the temporary truce.