Oil Prices Drop as Iran Reopens Hormuz Amid Truce

Oil prices fell sharply in early Asian trading on Wednesday after the United States and Iran agreed to a two-week ceasefire. This truce allows ships to pass safely through the Strait of Hormuz, a crucial route for global oil trade, responsible for about one-fifth of it. Iranian Foreign Minister Abbas Araghchi confirmed safe passage for two weeks, while Iran’s Supreme National Security Council noted that this ceasefire does not mean the conflict is over.

Talks between the US and Iran are set to start in Islamabad on Friday. This will be the first major diplomatic effort since the fighting began in February. Reports show that the US crude benchmark, West Texas Intermediate, dropped by 16.56% to $96.39 per barrel, and Brent crude also fell by 15.89% to $93.38.

In Asian stock markets, Japan’s Nikkei 225 index rose by 4.38%, while South Korea’s Kospi jumped by 5.71%. Investors reacted positively to the ceasefire announcement.

US President Donald Trump stated he would pause attacks on Iran for two weeks if Iran guarantees safe passage through the Strait. Following his announcement, a senior White House official indicated that Israel would also pause its bombing campaign while negotiations continue. Pakistan has urged Trump to extend the deadline for diplomacy and appealed to Iran to reopen the Strait as a sign of goodwill.

How much do you know?

What percentage did the US crude benchmark West Texas Intermediate drop by?

15.89%

16.56%

5.71%

4.38%

How long is the ceasefire set to last between the US and Iran?

One week

Two weeks

One month

Three weeks

Which index in Japan rose by 4.38%?

Nikkei 225

Kospi

Shanghai Composite

Hang Seng

What was the price of Brent crude after the drop?

$96.39

$93.38

$100.00

$85.00

Where are talks between the US and Iran scheduled to start?

Tehran

Islamabad

Washington

Beirut

Who confirmed the safe passage for two weeks?

US President

Iran's Supreme National Security Council

Abbas Araghchi

Donald Trump

The ceasefire allows ships to pass safely through the Strait of Hormuz.

True False

Iran's Supreme National Security Council stated that the conflict is over.

True False

Saudi Arabia was responsible for the ceasefire agreement.

True False

Pakistan has urged Trump to extend the deadline for diplomacy.

True False

Investors reacted negatively to the ceasefire announcement.

True False

US President Donald Trump stated he would pause attacks on Iran for a month.

True False

The ceasefire was agreed upon for a period of between the US and Iran.

The US crude benchmark is known as Texas Intermediate.

Japan's Nikkei 225 index rose by percent.

Following the ceasefire, Israel would also pause its campaign.

The Strait of Hormuz is responsible for about one-fifth of the global trade.

Iran's Foreign Minister Abbas Araghchi confirmed safe passage for weeks.

This question is required