finance
Oil Prices Decline Following US-Iran Ceasefire Announcement
Oil prices fell after President Donald Trump announced a two-week ceasefire between the United States, Israel, and Iran, which includes reopening the Strait of Hormuz. The Strait of Hormuz carries about 20% of global oil supply, and its disruption since February 28 has affected oil flows. Analysts predict potential declines in U.S. gas prices within days, though full restoration may take months.
Apr 8, 10:26 AM·2m read1 source
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Oil prices declined following the announcement of a two-week ceasefire between the United States, Israel, and Iran. President Donald Trump stated the ceasefire is contingent on reopening the Strait of Hormuz. The waterway typically carries about 20% of the global oil supply, with nearly all traffic disrupted since the start of the war on February 28.
Pentagon Chief Pete Hegseth told reporters on April 8 that the American military had completed its immediate actions but remains prepared to resume operations if Iran violates the agreement. Iran has agreed to allow safe passage through the strait during negotiations. U.S.
Energy Information Administration indicated that fuel prices could continue to rise for months even after reopening. >"Just as we had never before seen the strait close, we’ve never seen it reopen. What exactly that looks like remains to be seen.
" — EIA Administrator Tristan Abbey (Usa Today) The price of a barrel of Brent crude, the global oil benchmark, stood at around $109 at the end of April 7 before the announcement. It dropped to about $92 by the morning of April 8. The price remains 26% higher than before the war began on February 28.
The national average price for a gallon of regular unleaded gas was $4.
17 on the morning of April 8, according to GasBuddy’s tracker, unchanged from the previous day. 45 a month earlier. 93 per gallon as of April 8, with some areas reaching $9 per gallon. Patrick De Haan, head of petroleum analysis at GasBuddy, stated that gas prices could begin declining nationally within 48 hours, by a few cents daily.
He predicted prices could fall below $4 within one or two weeks. De Haan also noted that diesel prices may decline slightly later and are no longer expected to reach a record high.
