Oil prices declined sharply below $100 per barrel on April 8, after US President Donald Trump announced a provisional two-week ceasefire agreement with Iran, contingent on the immediate and secure reopening of the Strait of Hormuz, Reuters reported.

Brent crude decreased by 14.9% to $92.95 per barrel, while US West Texas Intermediate (WTI) dropped 16.1% to $94.79 per barrel, reflecting easing supply concerns.

The announcement came just ahead of a US deadline for Tehran to restore navigation through the Strait, through which roughly 20% of global oil supply flows, or risk potential strikes on its civilian infrastructure.

Trump described the development as a “double-sided ceasefire” in a social media post, marking a sharp shift in tone after earlier warnings of severe escalation.

Iran signaled conditional acceptance of the proposal, with Foreign Minister Abbas Araqchi stating that Tehran would suspend its operations if attacks against it ceased. He added that safe passage through the Strait could be ensured for two weeks in coordination with Iranian armed forces.

The development has temporarily eased market concerns over a major supply disruption, although uncertainty remains over the durability of the agreement.

In recent weeks, oil prices climbed sharply, posting one of the steepest monthly gains on record, amid fears of supply disruptions linked to Middle East tensions, before reversing on renewed diplomatic signals.