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Crude oil prices dropped sharply after President Trump said the US agreed to a two-week ceasefire with Iran proposed by Pakistan. Brent fell about 13% to around $95 and WTI fell about 14% to around $96, the largest one-day drop since the 1991 Gulf War apart from COVID.
The agreement is conditional on Iran allowing a complete reopening of the Strait of Hormuz.
The reopening of the Strait of Hormuz, which carries about a fourth of seaborne oil, would restore supply and lower the risk premium in crude. Lower energy costs would ease pressure on feed production and transport expenses.
axios.comBen Geman, Chuck McCutcheonApr 8, 2026After 250 past bearish geopolitics events, Crude Oil (Brent) moved a median -3.1% over 5 sessions (36% higher; middle half -7.9% to +1.6%), and -5.5% over 20.
After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Directly describes the April 8 Brent drop of about 13% after the US-Iran two-week ceasefire announcement, which cut the geopolitical supply-risk premium.
