Nigeria’s premium crude grade, Bonny Light, dropped below $95 per barrel on Wednesday, retreating sharply from levels above $130, after Iran agreed to reopen the Strait of Hormuz for two weeks as part of a temporary ceasefire arrangement with the United States. �
Reuters +2
The Strait of Hormuz remains one of the world’s most critical energy corridors, accounting for nearly 20 per cent of global oil and gas supply. The latest development brought significant relief to global energy markets after weeks of heightened tensions and supply disruptions caused by the prolonged conflict involving the United States and Iran. �
Reuters +1
Bonny Light had surged by more than 50 per cent since the outbreak of hostilities in the Middle East, as fears over restricted oil shipments through the strategic waterway drove prices to record highs.
Following the ceasefire announcement, global crude benchmarks recorded steep losses. West Texas Intermediate (WTI) fell by nearly 20 per cent, while Brent crude dropped by as much as 16 per cent, as investors reacted positively to the prospect of resumed oil flows.
As of Wednesday morning, U.S. crude futures traded around $96.31 per barrel, while Brent crude slipped to $94.71 per barrel, reflecting renewed market confidence and easing supply concerns. �
Reuters +1
The development also triggered a strong rally across global stock markets.
In Asia, Japan’s Nikkei index climbed about 5 per cent, while South Korea’s KOSPI surged 6 per cent, briefly prompting a trading halt. The MSCI Asia-Pacific index excluding Japan also advanced by 4 per cent.
Other major markets posted significant gains, with Seoul rising 6.9 per cent, Tokyo 5.4 per cent, Taipei over 4 per cent, and Mumbai 3.8 per cent. Hong Kong added nearly 3 per cent, while markets in Sydney, Shanghai, Bangkok, Manila, Jakarta, Singapore, and Wellington also closed sharply higher. �
Al Jazeera +1
The market rally followed a dramatic policy shift from U.S. President Donald Trump, who had earlier warned that failure to reopen the Strait of Hormuz would attract severe military consequences.
Hours before his ultimatum expired, Trump announced on social media that he had agreed to suspend attacks on Iran for a period of two weeks, subject to the “complete, immediate and safe opening” of the waterway.
He described the arrangement as a “double-sided ceasefire”, adding that the United States had already achieved its key military objectives and was moving toward a long-term peace agreement in the region. �
Al Jazeera +1
Iran subsequently confirmed that it had agreed to guarantee safe passage through the strait during the two-week truce.
Pakistan’s Prime Minister Shehbaz Sharif, who played a central mediation role, said the ceasefire would take effect immediately.
While Israel expressed support for the suspension of attacks on Iran, it clarified that the arrangement does not extend to ongoing military operations involving Lebanon. �
The Irish Times +1
This latest development has raised hopes of a possible de-escalation in the Middle East crisis, with global investors closely monitoring whether the fragile truce will hold beyond the two-week window.
If you want, I can help polish this further into Newsday Reporter house style (punchier intro + newsroom tone).
Oil Prices Fall Below $95 as Iran Reopens Hormuz Under Temporary US Ceasefire
