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Oil prices drop and stocks rally after Trump’s ceasefire announcement

Apr 07, 2026 23:52 UTC

Oil prices plummeted Tuesday after President Donald Trump agreed to a two-week ceasefire with Iran..

  • Oil prices plummeted Tuesday after President Donald Trump agreed to a two-week ceasefire with Iran, spurring hopes that more oil tankers would be able to transit the key Strait of Hormuz soon
  • But analysts warned that questions remained, including what will change for the effective blockade of the strait, through which about 20% of the world’s oil passes, and whether the ceasefire will lead to a long-term end to the war
  • US crude futures declined more than 15% after hours to less than $95 a barrel - a significant drop, but still well above the $67

Oil prices plummeted Tuesday after President Donald Trump agreed to a two-week ceasefire with Iran, spurring hopes that more oil tankers would be able to transit the key Strait of Hormuz soon. But analysts warned that questions remained, including what will change for the effective blockade of the strait, through which about 20% of the world’s oil passes, and whether the ceasefire will lead to a long-term end to the war. US crude futures declined more than 15% after hours to less than $95 a barrel - a significant drop, but still well above the $67.02 settled on February 27, before the war bega

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