Oil prices plunge below $100 after Iran agrees to safe passage through Strait of Hormuz during ceasefire

Oil prices plunged below $100 per barrel following a ceasefire agreement between the U.S. and Iran. As part of the deal, Iran will ensure safe passage for commercial vessels through the Strait of Hormuz, a critical chokepoint for global energy supplies.

President Donald Trump agreed to the ceasefire after discussions with Pakistani Prime Minister Shehbaz Sharif, who helped facilitate the negotiations.

This development significantly reduces the geopolitical risk premium in the energy market. For investors and the broader economy, lower oil prices ease inflationary pressures, potentially allowing central banks to maintain lower interest rates while boosting consumer spending and corporate profit margins.