US-Iran Ceasefire: Crude Oil Price Crashes Nearly 20%; 5 Points About 2-Weeks Truce Between Trump & IRGC

In a major move, the US and Iran have agreed to a two-week ceasefire deal, where the Islamic Revolutionary Guard Corps (IRGC) will reopen the much-needed Strait of Hormuz for shipping vessels. Hormuz is one of the biggest chokepoints for 20% of global oil and gas transitions. Following the news, crude oil prices crashed sharply to nearly 20%. The latest truce comes as major good news for economics, as the Middle East conflict that began on February 28, has sparked inflationary pressure.

Crude Oil Prices Crashed Today:

Right after Trump and IRAN declared a two-week truce, oil prices faced immense selling pressure in the early hours of April 8. This also meant that the US President has delayed his threat of attack on key Iranian civilian infrastructure.

Trump called the ceasefire a "double-sided ceasefire," occurring only on Iran reopening the Strait of Hormuz.

The reopening of Hormuz, which has been shut for over a month now, was pivotal as the Middle East war pushed energy prices higher and heightened the risk of a surge in inflation and slowdown in the global economy. Hence, the truce comes as good news for the global economy but also tames crude prices.

"The 2-week ceasefire between the US and Iran has dramatically altered the near-term market scenario. The crash in Brent crude to $ 95 following the ceasefire will again turn the market bullish. This ceasefire, particularly the agreed reopening of Hormuz Strait, will embolden the bulls to charge again, aided by the fair market valuations," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

US WTI Crude Oil Futures Crash Today:

The US Crude Oil WTI Futures for the May 2026 expiry crashed by at least 19.33% to hit an intraday low of $91.11 per barrel in the early trade. The crude is struggling to hold around the 95 mark.

Brent Crude Falls Today:

Brent Crude Oil also faced intense selloffs, falling by 16.06% to hit an intraday low of $91.72 per barrel. At the time of writing, this crude traded below $95 per barrel.

"The easing of geopolitical stress has led to a sharp fall in global crude oil prices, which is particularly positive for India from both inflation and currency perspectives," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.

US-Iran 2-Weeks Ceasefire: 5 Things To Know

1. What Does the 2-Week Ceasefire Plan Include?

Under the two-week truce, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations.

On April 7, Iran's Foreign Minister, Seyed Abbas Araghchi, said, "If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations."

The minister said the ceasefire comes after the brotherly request of PM Sharif in his tweet and considering the request by the US for negotiations based on its 15-point proposal as well as the announcement by POTUS about acceptance of the general framework of Iran's 10-point proposal as a basis of negotiations.

2. Double-Sided Ceasefire:

Through his Truth Social, Trump said, "I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double-sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East."

3. Has the US Agreed On Iran's 10-Point Plan?

Trump confirmed that the US has agreed on almost all of the various points in Iran's new 10-point proposal. But a final decision is pending and the two-week ceasefire will give them enough time to consider the points. It also needs to be noted that Iran has changed its previous 10-point proposal.

"We received a 10 point proposal from Iran and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalized and consummated."

4. Iran's New 10-Point Proposal:

While Iran rejected Trump's 15-point proposal in late March for negotiations, they had instead released their on 10-point proposal. Here's what they are:

- US should fundamentally commit to guaranteeing non-aggression in the future.

- Iran to continue the control over Strait of Hormuz

- Acceptance of uranium enrichment

- Elimination of all primary sanctions

- Elimination of all secondary sanctions

- Termination of all UN Security Council resolutions.

- Termination of all IAEA Board of Governors resolutions.

- Payment of reparations to Iran

- US forces withdrawal from Iranian regions.

- Cessation of war on all fronts including in Lebanon

5. US 15-Point Proposal On Iran:

Here are the key 15 points proposal from US:

- 30-days ceasefire

- Dismantle of Iran's nuclear facilities in Natanz, Isfahan and Fordow

- Iran's commitment to not developing nuclear weapons.

- Handover of uranium stockpile to the International Atomic Energy Agency ..

- IAEA to have full monitoring of Iran's nuclear infrastructure. No domestic uranium enrichment.

- Limits to be imposed on Iran's number of missiles.

- Iran to stop supporting terrorist proxies.

- Reopening of Strait of Hormuz

- US to remove sanctions on Iran and end UN snapback mechanism

- US to give support to Iran for electricity generation at their Bushehr nuclear plant.