EL7.AI
CommoditiesMediumUpdated×32•Originally published 15 April 2026•Updated 17 April 2026•
1 min read

Oil Prices Slump as Ceasefire Announced and Strait of Hormuz Reopens

Key Facts

1US oil and fuel exports hit their highest level ever as the world seeks to replace supplies disrupted by the Iran war.
2US gasoline stocks plunged by 6.33 million barrels, the largest draw since March 2023.
3The Strategic Petroleum Reserve (SPR) saw its biggest drawdown since December 2022.
4President Trump stated that the war with Iran is "very close to over."

Oil prices plummeted by 16% as markets reacted to the U.S. decision to pause military strikes against Iran, with WTI Crude dropping to the $93.00 level. According to a New York Times report, the U.S. opted for a two-week ceasefire instead of conducting planned strikes on Tuesday, significantly reducing the geopolitical risk premium. This massive drop follows earlier bearish catalysts, including the reopening of the Strait of Hormuz and the truce between Israel and Lebanon. However, Naeem Aslam, CIO at Zaye Capital Markets, noted that the oil market maintains a cautiously bullish bias despite the recent volatility. Technical analysts now identify the $87.00 trendline as the next critical support floor for prices. Market participants are assessing how this shift in energy costs will impact FED policy as Brent and WTI remain under heavy selling pressure.