Trump’s ceasefire announcement sends oil prices spiraling – Here’s what it means for you

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Crude oil prices tumbled below $100 per barrel in early Asian trading on Wednesday following President Trump’s announcement of a conditional two-week ceasefire agreement with Iran.

At the time of this report on Wednesday morning, West Texas Intermediate had dropped by 14.44%, trading at $96.64, while Brent Crude had fallen to $95, down 12.97% from the previous day.

The dramatic decline came after Trump committed to suspending military operations against Iran for two weeks, provided that Iran immediately restores safe passage through the Strait of Hormuz.

“This will be a double-sided CEASEFIRE!” Trump wrote on social media, a stark contrast to his earlier warning that “a whole civilization will die tonight” if Iran failed to meet U.S. demands.

Iran’s Foreign Minister, Abbas Araqchi, confirmed that Tehran would cease attacks as long as U.S. strikes against Iran stopped and that transit through the Strait of Hormuz would be coordinated by Iranian forces.

Crude prices had previously surged to over $105 per barrel after Trump issued a final warning to Iran regarding the Strait of Hormuz. The price spike had led the Dangote Refinery to raise its petrol price to N1,275 per liter on Tuesday.

With the sharp drop in crude prices on Wednesday, the 650,000-barrel-per-day refinery is expected to reduce its petrol price, offering relief to Nigerians who have been paying between N1,290 and N1,350 per liter in Abuja.

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