WTI Hits $100

WTI crude oil futures tumbled more than 15% to around $95 per barrel on Wednesday after President Donald Trump postponed his threat to strike Iranian civilian infrastructure by two weeks, describing the move as part of a “double-sided ceasefire” dependent on Iran reopening the Strait of Hormuz. Trump said the US had received a 10-point proposal from Tehran that he called a workable basis for negotiations, with the delay aimed at allowing time to finalize a potential agreement. Iran has agreed to reopen the strait temporarily if hostilities pause, with transit coordinated through its armed forces, while Israel is also reported to have accepted the arrangement. The near-closure of the vital waterway, through which about 20% of global oil flows, has roiled energy markets and heightened risks of rising inflation and a global economic slowdown. Meanwhile, a drone strike hit Saudi Arabia’s East West pipeline, a key route to the Red Sea that has helped bypass disruptions in the Gulf.

WTI crude futures plunged more than 15% to below $95 per barrel on Wednesday after President Donald Trump delayed his threat to attack Iranian civilian infrastructure by two weeks in what he described as a “double-sided ceasefire,” contingent on Iran reopening the Strait of Hormuz. Trump also said the US had received a 10-point proposal from Iran that he described as a “workable basis for negotiations,” with the two-week window allowing the potential agreement to be finalized and implemented. Additionally, Iran has agreed to reopen the Strait of Hormuz for two weeks provided all attacks are halted, adding that transit would need to be coordinated with Iran’s Armed Forces, while Israel has also reportedly assented to the temporary ceasefire. The near-closure of the vital waterway, through which about 20% of global oil flows, has roiled energy markets and heightened risks of rising inflation and a global economic slowdown.

WTI crude oil futures retreated from intraday highs to trade below $111 per barrel as traders weighed a potential diplomatic breakthrough ahead of President Trump's 8 p.m. deadline. While prices initially surged following US strikes on Iran's Kharg Island terminal, the rally lost momentum after Pakistan's Prime Minister Shehbaz Sharif proposed a two-week extension of the deadline and a temporary reopening of the Strait of Hormuz. This Pakistani-brokered mediation effort offered a glimmer of hope for an eleventh-hour deal which prompted some investors to pare back their defensive energy positions. Market participants are also considering the potential for demand destruction as the International Energy Agency warned that the current crisis could be more severe than the shocks of the 1970s.