Oil prices experienced a significant decline, falling below $100 per barrel after U.S. President Donald Trump announced a two-week ceasefire with Iran. As of 1205 GMT, Brent crude futures were down 16% at $91.80 a barrel, while West Texas Intermediate (WTI) futures slid 18% to $92.62. This drop follows Trump's ultimatum for Iran to reopen the Strait of Hormuz, a critical passage for about 20% of the world's oil supply. In response, Iran's Foreign Minister Abbas Araqchi stated that Iran would cease its attacks if U.S. strikes stopped, facilitating safe passage through the strait. Analysts suggest that while this ceasefire may temporarily stabilize oil prices, the potential for future threats to the Strait of Hormuz remains, impacting long-term market perceptions. The outcome of ongoing negotiations in Pakistan will be crucial in determining the future of oil supply and pricing.