(RTTNews) - Oil prices plummeted on Wednesday after the U.S. and Iran agreed to a two-week ceasefire to ensure stability in the region's critical energy corridor.
Brent crude futures for June delivery plunged 13.4 percent to $94.56 a barrel on hopes that oil and gas flows through the Strait of Hormuz could soon resume. WTI crude futures for May delivery were down nearly 16 percent at $95.15.
U.S. President Donald Trump touted the breakthrough as a major victory for international diplomacy, asserting that Iran has signaled a readiness for lasting stability after a volatile and prolonged standoff.
In a post on Truth Social, Trump wrote, "A big day for World Peace! Iran wants it to happen, they've had enough! Likewise, so has everyone else!"
The Pakistan-brokered last-minute ceasefire deal has opened the way to getting shipping on the move in the Strait of Hormuz, but both Iran and Oman can levy transit fees on ships traversing the waterway.
The ceasefire calls for Israel and Hezbollah to halt fighting in Lebanon. Trump said he was holding off on his threatened attacks on Iranian bridges and power plants.
Tehran said its 10-point plan for securing an end to the war with the United States would require "continued Iranian control over the Strait of Hormuz, acceptance of uranium enrichment and the lifting of all primary and secondary sanctions".
Ahead of direct negotiations scheduled to begin in Islamabad, Trump publicly accepted that Iran's 10-point ceasefire plan is workable. However, there is confusion over nuclear enrichment language.
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