U.S. West Texas Intermediate (WTI) crude oil plunged more than $12 per barrel on Wednesday after President Donald Trump announced a two-week ceasefire with Iran.
The drop came as Trump confirmed the ceasefire just before his deadline for Iran to open the Strait of Hormuz, a vital shipping lane through which 20% of global oil supply passes.
WTI for May delivery fell $12.04, or 10.66%, to $100.90 per barrel by 2251 GMT.
This development marks a significant shift in energy market sentiment, reflecting reduced geopolitical risk amid the temporary truce.