Oil prices dipped under $100 a barrel on Wednesday after U.S. President Donald Trump said he had struck a two‑week ceasefire agreement with Iran, contingent on the immediate and safe reopening of the Strait of Hormuz.

Brent crude dropped $14.84, or 13.6 per cent, to $94.43 a barrel, while U.S. West Texas Intermediate slid $16.13, or 14.3 per cent, to $96.82 a barrel as of 0023 GMT, after President Trump eased off just before his deadline for Iran to reopen the Strait of Hormuz — a key route for about 20 per cent of the world’s oil, or face widespread attacks on its civilian infrastructure.

“This will be a double sided CEASEFIRE!” he wrote on social media, after warning earlier on Tuesday that “an entire civilization will perish tonight” if his conditions were ignored.

Iran stated it would suspend its attacks if assaults against it ceased and that safe passage through the Strait of Hormuz would be guaranteed for two weeks in coordination with Iranian armed forces, Foreign Minister Abbas Araqchi said on Wednesday.

Meanwhile, several Gulf states reported missile and drone activity or advised civilians to seek shelter.

WTI has stayed priced above Brent, reversing the usual trend, because its delivery contract is for May while Brent’s is for June, showing that oil with an earlier delivery date commands a higher price.