The shift in stance came just ahead of Trump’s deadline for Iran to reopen the Strait of Hormuz, a key route that carries 20% of the world’s oil supply, or face broad attacks on its civilian infrastructure.
“This will be a double sided CEASEFIRE!” Trump wrote on social media. Earlier on Tuesday, he had warned that “a whole civilization will die tonight” if his demands were not met.
Brent crude oil price on March 8
Brent crude fell $14.84, or 13.6%, to $94.43 a barrel, while WTI declined $16.13, or 14.3%, to $96.82 a barrel as of 0023 GMT.
Iran said it would stop its attacks if actions against it ceased. It also indicated that safe passage through the Strait of Hormuz would be ensured for two weeks in coordination with its armed forces, according to a statement by Foreign Minister Abbas Araqchi on Wednesday.
Trump also said the U.S. had received a 10-point proposal from Iran, describing it as a workable basis for negotiations, and added that both sides were close to reaching a long-term peace agreement.
The U.S.-Israeli war with Iran had driven the sharpest monthly increase in oil prices on record in March, with a rise of more than 50%.
Over the past month and a half, the war has focused heavily on targeting critical energy infrastructure, disrupting key supply channels and heightening concerns across global energy markets.
What are experts saying?
International brokerage Macquarie has said that even if tensions ease in the near term, oil prices are likely to find support in the $85–$90 range.
Experts say if ongoing tensions persist, the outlook for crude oil remains volatile and tilted upward. Continued conflict in the Middle East, especially disruptions around the Strait of Hormuz, would keep supply chains constrained, pushing Brent and WTI prices higher and sustaining inflationary pressures worldwide.
“Even with a peace deal, Iran may be emboldened to threaten the Strait of Hormuz more frequently in the future, and the market will price in heightened risk to the Strait of Hormuz going forward,” MST Marquee analyst Saul Kavonic, told Reuters.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
