Oil prices crashed below $100 in early Asian trading on Wednesday after President Trump announced a conditional two-week ceasefire agreement with Iran.
West Texas Intermediate plummeted 14.44% to $96.64, while Brent Crude dropped to $95, down 12.97% from the previous day.
This dramatic selloff followed Trump’s commitment to suspend military operations against Iran for two weeks if they restore safe passage through the Strait of Hormuz.
“This will be a double-sided CEASEFIRE!” Trump said on social media, marking a sharp reversal from his earlier warning that “a whole civilization will die tonight” if Iran failed to comply with U.S. demands.
Persecondnews had reported that Iran’s Foreign Minister, Abbas Araqchi, confirmed that Tehran would halt attacks provided strikes against Iran cease and transit through the Strait is coordinated by Iranian forces.
The drop in crude prices after its earlier hit the rooftop to over $105 per barrel after Trump gave his final warning to Iran over the Strait of Hormuz reopening.
The spike in crude prices had earlier made the Dangote Refinery increase its gantry petrol price on Tuesday to N1,275 per liter.
With Wednesday’s drop in crude prices, the 650,000-barrel-per-day refinery is expected to reduce its petrol price to bring respite to Nigerians currently buying petrol within N1290 per liter and N1350 per liter in Abuja.
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