The global energy market witnessed a major sigh of relief on Wednesday as crude oil prices plummeted by nearly 15% immediately after the US-Iran ceasefire was announced. Following US President Donald Trump’s declaration of a two-week pause in military operations, Brent Crude oil prices dropped significantly, falling below the $100 mark to reach $95 per barrel.

During the 40-day conflict, prices had surged to a high of $109.77 per barrel. Similarly, US West Texas Intermediate (WTI) crude saw a massive dip of nearly $20 per barrel. The volatility was primarily linked to the closure of the strategic Strait of Hormuz by Iran, a critical maritime route responsible for one-fifth of the world’s daily oil consumption.

The supply bottleneck in March had caused oil prices to spike by 50%, leading to an energy crisis in several countries, including India. While fuel prices in India remained relatively stable, the global surge threatened a massive inflationary wave. With the ceasefire now in place and the potential reopening of the Strait of Hormuz, the supply chain is expected to normalize, bringing much-needed stability to the global economy and fuel consumers worldwide.