Oil crashes 15% as Iran ceasefire unwinds the war premium
WTI crude fell from $113 to below $95 after Trump's two-week ceasefire with Iran included a commitment to reopen the Strait of Hormuz. The drop erases roughly half of the conflict-driven spike that took oil from $62 to $113 in six weeks.
Crude oil plunged more than 15% on April 8 after the United States and Iran agreed to a two-week ceasefire that includes Iran reopening the Strait of Hormuz to safe passage.
WTI crude fell from $112.95 to $94.55 per barrel — the largest single-day percentage drop since the early pandemic. Brent crude dropped from $109.27 to $94.13, a 13.8% decline.
The move compressed what analysts estimated as a $14-per-barrel war risk premium down to roughly $4-6 per barrel.
The arc
The price chart tells the full story of the Iran conflict's impact on oil markets:
| Date | WTI | Event |
|---|---|---|
| Feb 17 | $62.53 | Pre-conflict baseline |
| Mar 5 | $80.88 | Conflict escalation begins |
| Mar 9 | $94.65 | Strait of Hormuz threat |
| Mar 13 | $98.48 | Brent hits $122 |
| Mar 30 | $104.69 | After second Kharg Island strike |
| Apr 7 | $112.95 |