WTI crude futures tumbled more than 15% to below $95 per barrel on Wednesday after President Donald Trump postponed, by two weeks, his threat to strike Iranian civilian infrastructure. He described the move as part of a “double-sided ceasefire,” conditional on Iran reopening the Strait of Hormuz.
The announcement came less than two hours before Trump’s deadline for Iran to reopen the strategic waterway or face U.S. attacks on its power plants and bridges. Trump also said Washington had received a 10-point proposal from Tehran that he characterized as a “workable basis for negotiations,” with the two-week extension intended to provide time to finalize and implement a potential agreement.
Iran, however, has not confirmed Trump’s statements nor indicated that it will permit the resumption of commercial shipping through the Strait of Hormuz. The effective near-closure of this critical chokepoint, which handles roughly 20% of global oil shipments, has shaken energy markets and intensified concerns about inflation and the risk of a global economic slowdown.
