The global economy received a much-needed boost on Wednesday as crude oil prices witnessed a sharp decline following US President Donald Trump’s announcement of a two-week ceasefire with Iran. Brent Crude, which was trading near $110 per barrel, dropped significantly to approximately $95 per barrel. Similarly, the US West Texas Intermediate (WTI) crude also saw a massive plunge of nearly $20.

The primary catalyst for this crash is the anticipated reopening of the Strait of Hormuz, a vital maritime artery through which one-fifth of the world’s oil and gas flows. The conflict, which escalated in late February, had forced tankers to take expensive alternative routes, leading to a 50% surge in oil prices in March alone. However, with Iran agreeing to ensure safe passage for vessels during the truce, the immediate supply concerns have vanished.

This positive development has not only cooled down global inflation fears but also triggered a rally in international stock markets. While investors are optimistic about the upcoming long-term peace talks, experts remain cautious, noting that this relief depends entirely on the diplomatic success of the next 14 days. For now, the world celebrates a temporary reprieve from skyrocketing energy costs.