NEW YORK: Oil plummeted on Wednesday, falling below US$100 a barrel, on hope of the Strait of Hormuz reopening after US President Donald Trump agreed to a two-week ceasefire with Iran.
Brent crude futures settled US$14.52, or 13.29%, lower at US$94.75 a barrel, while US West Texas Intermediate (WTI) crude slid US$18.54, or 16.41%, to US$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.
...