In reaction to the United States President Donald Trump's announcement of a two-week ceasefire with Iran, oil prices on Wednesday plunged below $100 per barrel, causing hope amongst market players.
The Strait of Hormuz route's closure affected oil and market prices globally, and higher chances of disruption in supplies from the West Asia region.
Data showed Brent crude fell sharply to around $95 per barrel post the ceasefire announcement, prompting ripples of relief. US West Texas Intermediate (WTI) crude also showed similar figures.
Trump's declaration of the peace deal with Iran was announced on Tuesday, with the US President stating that the goals of the US-Iran offensive, named 'Operation Epic Fury', had been achieved.
Stock markets cheer US-Iran ceasefire; Sensex jumps nearly 4%The conflict in West Asia boiled into its second month, before US and Iran, with the mediation of Pakistan, assented to sign a ceasefire agreement to stop military action from both sides.
Pakistan Prime Minister Shehbaz Sharif helped aid the peace talks confirmed that delegations from both sides would meet in Islamabad on Friday.
Sharif also said the agreement included a stop on Israel's campaign in Lebanon.
Trump, on a post on Truth Social, said, "Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks."
Furthermore, Foreign Minister Abbas Araghchi said Iran would allow safe maritime passage through the Strait of Hormuz for the dialogue duration, though under coordination with its armed forces, and may be subjected to "technical limitations".