"Buttons" over 15% noted oil pricesWednesday, following the announcement of the truce between the US and Iran, which will last two weeks, in exchange for securing Tehran's safe passage through the Strait of Hormuz.
In particular, the Brent retreats 13.4% at $94.63 per barrel and the American slow WTI loses 16.34% at $96.75 a barrel.
It is recalled that Donald Trump said the two-week truce depends on Iran's agreement to open the Strait of Hormuz fully, directly and securely. The US has received a 10-point proposal from Iran, which is a functional basis for negotiations, he said.
"Almost all the various points of disagreement of the past have been agreed between the US and Iran, but a two-week period will allow finalisation and completion of the agreement," Trump said in posting him on social media.
Iranian Foreign Minister Abbas Aragci said Tehran would allow safe transit through the strait during the truce through "coordination with Iran's Armed Forces and taking due account of technical restrictions".
"If the attacks against Iran cease, our powerful Armed Forces will stop their defence operations," Aragchi noted.
The apparent ceasefire came less than two hours before Trump set the deadline at 8 pm (East Coast time) to reopen Iran's Strait. The president had threatened to bomb every bridge and power station in Iran if the country's leaders did not meet this deadline.
Trump's rhetoric had taken a threatening turn Tuesday morning, when he threatened to destroy Iran's entire culture. "A whole culture will die tonight, so it never comes back," Trump said in a social media post earlier Tuesday. "I don't want that to happen, but it's probably gonna happen."
The president said he agreed to the ceasefire after talks with Pakistan Prime Minister Sebaz Sharif. The prime minister had asked Trump to postpone his deadline, so that negotiations would continue. Sharif also asked Iran to reopen the strait during this period as a sign of goodwill.
Oil exports through the Strait have collapsed due to Iran's attacks on merchant ships, causing the biggest interruption in the supply of crude oil in history.
About 20% of global oil supplies passed through the Strait before the US and Israel attacked Iran on 28 February. The narrow sea route connects producers in the Persian Gulf with world markets.
Prices of crude oil, aircraft fuel, diesel and gasoline have been launched during the war. CEOs of oil companies and analysts have warned that the fuel shortage will have an impact all over the world if the Strait does not open completely again.
