NEW YORK, – Oil plummeted on Wednesday, falling below $100 a barrel, on hope of the Strait of Hormuz reopening after U.S. President Donald Trump agreed to a two-week ceasefire with Iran.

Brent crude futures settled $14.52, or 13.29%, lower at $94.75 a barrel, while U.S. West Texas Intermediate crude slid $18.54, or 16.41%, to $94.41 a barrel.

Oil prices fell in anticipation of the strait reopening and energy supplies that have built up being able to pass through the shipping route, said Andrew Lipow, founder of Lipow Oil Associates.

Trump’s turnaround came shortly before his deadline for Iran to open the strait or face widespread attacks on its civilian infrastructure. About 20% of the world’s daily oil supply passes through the narrow waterway.

“This will be a double sided CEASEFIRE!” Trump wrote on social media after posting earlier on Tuesday that “a whole civilization will die tonight” if his demands were not met.

Trump said on Wednesday the U.S. will work closely with Iran and will be talking about tariff and sanctions relief with Tehran.

“Overall, the market is hopeful more oil is going to reach the market… but it is still concerned that it is a very fragile ceasefire and it may not last,” Lipow said.

On Wednesday, Israel carried out its heaviest strikes on Lebanon since the conflict with Hezbollah broke out last month, even as the Iran-aligned group paused attacks on northern Israel and Israeli troops in Lebanon under the ceasefire.

Iran’s parliament speaker Mohammad Baqer ‌Qalibaf said in a post on X that key clauses of a 10-point ceasefire proposal were violated even before U.S.-Iran peace talks are set to start on Friday in Pakistan, adding that in such a situation a bilateral ceasefire or negotiations were unreasonable.

The breaches included the violation of a ceasefire in Lebanon, the entry of a drone into Iranian airspace and the denial of Iran’s right to uranium enrichment, Qalibaf said.

Earlier on Wednesday, Trump told PBS News in an interview that Lebanon is not part of the ceasefire agreement the U.S. has with Iran “because of Hezbollah”.

Shipping sources said the Iranian navy threatened ships attempting to pass through the strait without Tehran’s permission with destruction on Wednesday and that transit remained shut.

Iran had said it would halt its attacks if strikes against it stopped and that safe transit through the strait would be possible for two weeks in coordination with Iranian armed forces.

Iran could open the strait in a limited and controlled way on Thursday or Friday ahead of a meeting between U.S. and Iranian officials in Pakistan, a senior Iranian official involved in the talks told Reuters on Wednesday.

“Safe passage for ships in the Strait of Hormuz will be a key point in the talks … Oil is set to remain meaningfully above pre-war levels until there is clear evidence of shipping normalization,” said Raymond James analyst Pavel Molchanov.

Shippers were seeking clarity on the logistics, while refiners inquired about new crude loadings on Wednesday, in response to the ceasefire deal.

Iran attacked Saudi Arabia’s East-West Pipeline just hours after the ceasefire was agreed, an industry source told Reuters, hitting its only crude oil export route since hostilities began.

Several Gulf states said early on Wednesday they identified missile launches and drone attacks or issued warnings to civilians to take shelter.

Oil futures pared losses after U.S. government data showed a larger-than-expected build in crude stockpiles.

U.S. crude stocks rose by 3.1 million barrels to 464.7 million barrels during the week ended April 3, the Energy Information Administration said. That was higher than the 701,000-barrel build forecast in a Reuters poll.

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