Oil prices fall below $100 after truce

(Patria) - Crude oil prices have fallen sharply, dropping significantly below the $100 per barrel level, after US President Donald Trump announced that the United States has agreed to a two-week truce with Iran proposed by Pakistan, world agencies report.

Trump clarified that the agreement is conditional on Iran allowing the "full" reopening of the Strait of Hormuz. The near-complete blockade of this waterway – through which approximately a quarter of the world's seaborne oil trade passes – has led to the biggest disruption in the history of the oil market.

The price of global benchmark Brent crude for future delivery fell by about 16 percent, to around $92 per barrel. However, this is still significantly above the level of approximately $73, at which it was immediately before the conflict began at the end of February. US benchmark WTI crude fell by about 19 percent, to approximately $92 per barrel.

"The market is crying out for good news, but it remains to be seen whether the Strait of Hormuz will indeed be fully opened," Bob McNally, founder and president of Rapidan Energy Group, told CNN. "That is key, and for now, it seems Washington and Tehran are not speaking the same language on this."