Washington, 8 April 2026 (dpa/MIA) - Oil prices fell sharply after the announcement of a two-week ceasefire in the Iran conflict, reversing recent steep rises.

The price of a barrel of Brent crude for June delivery plunged about 16% to around $92, the lowest level since mid-March. US West Texas Intermediate (WTI) crude for May delivery showed a similar drop. Oil prices remain a key gauge of inflation and economic concerns in the market.

The United States and Iran agreed to the ceasefire just before the expiration of a deadline set by US President Donald Trump, who had threatened major attacks on Iran's energy sector unless Tehran reopened the Strait of Hormuz by 0000 GMT on Wednesday. Both sides announced the truce shortly before the deadline.

The strait, a critical artery for global oil and gas trade, had been effectively blocked by Iran during the conflict, sending oil prices sharply higher. Iranian Foreign Minister Abbas Araghchi said safe passage through the strait will now be possible for two weeks.

Photo: MIA