President Trump pauses US bombings on Iran, WTI toward $95
Business
Oil prices took a big hit after President Trump announced a pause in US bombings on Iran.
US crude (WTI) dropped as much as 17%, slipping toward $95 per barrel, and Brent crude also lost ground, closing at $109.50 per barrel.
The sudden drop follows price spikes driven by Middle East tensions.
Ceasefire requires Strait of Hormuz reopening
This ceasefire only sticks if Iran reopens the Strait of Hormuz, a narrow passage that handles about 20% of the world's energy supply.
Its near closure recently sent oil prices soaring by 70%.
Even with the ceasefire, over nine million barrels a day from Middle Eastern producers are expected to stay offline for now, so getting oil flowing again won't be quick or easy.