US Oil Prices Dip Below $95 Threshold Following Donald Trump’s 14-Day Truce Announcement — NRG-IA

19% Collapse on International Exchanges Oil prices have recorded a historic decline in the last few hours after US President Donald Trump officially announced a two-week ceasefire in the conflict with Iran. This unexpected diplomatic move triggered a chain reaction in financial markets, with US crude oil (WTI) futures falling by more than 15% immediately after the close of the official trading session, reaching values below $95 per barrel. According to data monitored by HotNews.ro and Economedia, the total daily decrease reached 19%, marking the most severe negative correction in nearly six years. Investors reacted instantly to the prospect of restoring trade flows through the Strait of Hormuz, a critical chokepoint through which approximately 20% of global oil consumption passes. From Threats to Negotiations: The Timeline of a Paradigm Shift The truce announcement comes less than 12 hours after the White House leader had issued harsh warnings regarding possible attacks on Iran's energy infrastructure. The shift in tone was mediated by Pakistan's Prime Minister, Shehbaz Sharif, who officially requested an extension of the deadline imposed on Tehran to avoid a full-scale military escalation. "The administration is in the middle of heated negotiations," Donald Trump told a US television network shortly before the expiration of the ultimatum targeting Gulf shipping routes. The primary condition of this 14-day temporary truce is keeping the Strait of Hormuz open. Iran has reportedly accepted the US proposal, according to American media sources, which immediately eliminated the "risk premium" previously baked into the barrel price. Impact on Global and Regional Economy The sharp drop in energy prices generated a wave of optimism on US and Asian stock exchanges. Analysts anticipate a reduction in global inflationary pressures, given that oil prices are a key component in transport and production costs. In the Gulf region, the de-escalation removes, at least temporarily, the Iranian threat to water desalination plants, a critical resource on which tens of millions of people depend. Although the period of calm is limited to just two weeks, the market interpreted the gesture as a clear signal of de-escalation. However, volatility remains high, and the sustainability of this price depends on both parties honoring the commitments made during the Pakistan-mediated negotiation window. This article was generated with the assistance of Aurora AI and editorially verified.