WASHINGTON, April 9, 2026 — Oil prices fell below $100 a barrel after U.S. President Donald Trump announced a two-week ceasefire involving Iran, prompting a sharp selloff in crude futures as traders responded to reduced fears of disruption in global oil supply routes.

West Texas Intermediate futures dropped to around $95 a barrel while Brent crude also slid, according to market data cited in reports, as investors reassessed risk tied to shipping flows through the Strait of Hormuz. The waterway is one of the most important global energy corridors, carrying roughly one-fifth of the world’s oil trade.

The price move came after Trump said a temporary ceasefire had been agreed, easing immediate concerns about escalation in the region. The announcement shifted market attention away from potential supply disruption and toward expectations of more stable shipping conditions, at least in the short term.

Markets React After Ceasefire Announcement

Oil futures fell sharply after the announcement of a two-week ceasefire, as traders quickly priced in reduced risk of disruption to crude flows through the Strait of Hormuz. The selloff reflected a rapid shift in sentiment across energy markets, with both Brent and West Texas Intermediate slipping below $100 a barrel during the session.

The move came as investors reassessed exposure tied to Middle East tensions, particularly around key shipping lanes that handle a significant share of global oil trade. Even with the ceasefire in place, traders remained focused on how long the agreement would hold and whether it would translate into sustained stability in regional energy transit routes.

Inventory Data Adds to Price Decline: U.S. crude inventories climbed more than expected in the latest government data, coinciding with a drop in prices already driven by the ceasefire announcement. The higher stockpiles added to expectations of ample near-term supply availability, reinforcing selling across futures markets.

Market participants said the combination of easing geopolitical concerns and higher stock levels created a dual driver for the decline. Attention shifted toward whether demand trends would absorb rising inventories in the weeks ahead, particularly as refinery activity and import patterns adjust to changing market conditions.

Shipping Routes Remain in Focus: Despite the ceasefire announcement, the Strait of Hormuz remained a central concern for traders given its role as a critical corridor for global crude shipments. Any disruption in the waterway has the potential to quickly affect pricing across international oil benchmarks.

Traders continued to monitor regional developments closely, with uncertainty still attached to the durability of the ceasefire. Even limited incidents in the area have previously triggered sharp price swings, keeping risk assessment tightly linked to shipping security and military activity in surrounding waters.

Inventory Data Adds to Downward Movement

U.S. crude stockpiles also influenced trading during the session, with official data showing a larger-than-expected build in inventories. The increase added to the downward pressure on prices already driven by the geopolitical announcement.

Higher inventories are often interpreted by traders as a sign of weaker near-term demand or adequate supply availability, and in this case the data reinforced the selloff triggered by the ceasefire news.

The combination of rising stockpiles and reduced geopolitical risk created a dual driver for the decline in futures prices, according to market participants tracking daily movements.

Shipping Routes Remain Key Focus

Despite the ceasefire announcement, attention remains fixed on the Strait of Hormuz, where any disruption can quickly affect global crude flows. The narrow passage is considered one of the most strategically sensitive energy routes in the world.

Even with temporary easing in tensions, traders continue to watch for any renewed incidents that could affect tanker traffic. Oil markets have repeatedly reacted strongly to developments in the region, particularly when they involve military activity or threats to shipping lanes.

Outlook Tied to Negotiations and Flows

Energy analysts said future price direction will depend on whether the ceasefire leads to sustained stability in shipping routes and whether broader negotiations continue beyond the two-week period.

Traders are also watching inventory trends and production levels from major suppliers, which will interact with geopolitical developments in shaping market sentiment.

For now, crude markets remain closely tied to developments in the Middle East, with pricing continuing to respond quickly to shifts in both diplomatic signals and physical supply conditions.