GLOBAL oil prices plunged on April 8 after US President Donald Trump delayed a military strike on Iran and signalled progress towards a ceasefire that could reopen the Strait of Hormuz.
Bloomberg reported on Wednesday that Brent crude, the international benchmark, dropped 14.7 per cent to US$93.20 a barrel as of 8.10 am (Malaysian time), while US benchmark West Texas Intermediate (WTI) fell 15.1 per cent to the same level, reflecting a rapid unwinding of risk premiums built up during weeks of escalating conflict.
The sharp market reaction followed Trump’s announcement of a two-week suspension of military action, just hours before a self-imposed deadline for Tehran to agree to peace terms.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump said in a post on Truth Social.
The decision to hold off on attacking Iran is “subject to the Islamic Republic of Iran agreeing to the complete, immediate and safe opening of the Strait of Hormuz.”
The near-closure of the shipping artery, through which roughly one-fifth of global oil and liquefied natural gas flows, had severely disrupted energy markets, driving US crude prices up by nearly 70 per cent since the conflict began in late February.
According to US government estimates, curtailed shipments are expected to sideline more than nine million barrels per day of oil output from major Middle Eastern producers in April, underscoring the scale of the supply shock.
Despite the price fall, analysts cautioned that a sustained recovery in supply would take time even if a ceasefire is secured.
“The physical system won’t snap back quickly. Restarting shut-in wells, repositioning crews and vessels, and rebuilding refinery inventories will take months,” said Robert Rennie, head of commodity research at Westpac Banking.
“In that environment, it’s hard to see Brent sustainably trading much below US$90–US$95 in the near term, assuming a ceasefire materialises at all.”
The lead-up to the now-delayed deadline had been marked by intensifying military activity and increasingly forceful rhetoric from Washington, including a warning from Trump that “a whole civilisation will die tonight.”
US officials said American forces had earlier struck sites on Iran’s Kharg Island, similar to targets hit in previous operations, though energy infrastructure was not directly targeted.
Speaking in Budapest, Vice President JD Vance expressed confidence that Iran would respond in time, while signalling that further military action remained under consideration if diplomacy falters. - April 8, 2026
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