WTI crude oil futures plunged more than 15% to below $93 per barrel on Wednesday after President Donald Trump postponed, by two weeks, his previously threatened strikes on Iranian civilian infrastructure. He characterized the delay as part of a “double-sided ceasefire” contingent on Iran reopening the Strait of Hormuz. According to Trump, Washington has received a 10-point proposal from Tehran that he described as a viable framework for talks, with the extension intended to provide time to finalize a potential agreement.
Under the emerging arrangement, Iran has agreed to reopen the strait on a temporary basis if hostilities are paused, with maritime transit to be coordinated through its armed forces. Israel is also reported to have accepted the terms. The effective near-closure of the Strait of Hormuz—through which roughly 20% of the world’s oil supply passes—has unsettled energy markets and amplified concerns over inflationary pressures and the risk of a global economic slowdown. At the same time, a drone strike targeted Saudi Arabia’s East–West pipeline, a critical conduit to the Red Sea that has served as an alternative route to circumvent disruptions in the Gulf.
