Oil Prices Fall 15% After US-Iran Ceasefire Deal

Oil prices tumbled nearly 15 percent on Wednesday after U.S. President Donald Trump delayed a threatened military strike on Iran and Tehran agreed to a two-week ceasefire that includes reopening the Strait of Hormuz under military oversight.

The announcement came just after 8 p.m. ET on Tuesday, as Trump's self-imposed deadline for Iranian compliance approached. In a post on Truth Social, Trump stated he would hold off on attacks targeting Iran's bridges, power plants and other civilian infrastructure, provided Tehran halts hostilities and allows passage through the strait for the next two weeks. Iran's national security council quickly confirmed acceptance of the ceasefire terms, contingent on no further assaults. Officials in Tehran also announced that peace talks with the United States would commence in Islamabad on Friday.

The Strait of Hormuz, a vital chokepoint for about one-fifth of the world's oil and liquefied natural gas shipments, has been largely closed since late February, when U.S. and Israeli forces struck Iranian targets, igniting a conflict now in its sixth week. The disruption has idled at least 12 million barrels per day of Middle Eastern supply, equivalent to...