Oil prices fell well below $100 after President Trump announced a ceasefire in the Iran War on Tuesday evening.
The global pricing benchmark Brent crude dropped from $111 to $91 as markets opened on Wednesday. The United States domestic oil blend, West Texas Intermediate, fell by nearly 20% to trading at $92.
Brent prices skyrocketed in Operation Epic Fury’s immediate aftermath, shooting from $70 to over $110 in one month. U.S. gasoline prices rose from $2.98 to over $4.10 per gallon as Iranian retaliation shuttered the Strait of Hormuz and the global oil trade, according to AAA.
Oil prices’ steep decline could continue if the ceasefire is maintained and a permanent agreement is reached. For every $10 decrease in Brent’s price, U.S. gasoline drops roughly 24 cents per gallon. However, Brent could soar to previous highs if the conflict heats up again.
Brent crude dipped under $100 mid-war after Trump announced a temporary hold on U.S. strikes against Iranian energy facilities. Prices quickly returned to over $110 after the conflict continued and market confidence fell.
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