KATHMANDU: Global oil prices dropped sharply after U.S. President Donald Trump announced a conditional two-week ceasefire agreement with Iran.
The deal includes the reopening of the strategically important Strait of Hormuz, easing fears of supply disruptions and calming energy markets worldwide.
Crude prices fell more than 15 percent overnight, marking one of the steepest single-day declines in recent years. Reports indicate that U.S. West Texas Intermediate (WTI) crude for May delivery dropped by around $18–20 per barrel, settling near $94.85 after touching intraday lows close to $91. Brent crude also recorded similar declines, pulling both global benchmarks back below the key $100 level.
The announcement lifted investor confidence across global markets, particularly in Asia. Japan’s Nikkei Stock Average surged nearly 5 percent at one stage, reflecting optimism following signs of de-escalation in the Middle East.
Tensions in recent weeks had effectively disrupted movement through the Strait of Hormuz, a route responsible for transporting nearly one-fifth of global oil and gas supplies.
Uncertainty had driven fuel prices higher and created concerns across multiple industries, including the automotive and logistics sectors, both of which rely heavily on stable energy costs.
