Brent crude fell by 13.28 percent to $94.76 per barrel on Wednesday as geopolitical tensions involving Iran, the United States, and Israel eased.
US West Texas Intermediate (WTI) also declined by 14.72 percent to $96.31 per barrel.
The drop followed signals of de-escalation after President Donald Trump said the United States would suspend planned military action against Iran for two weeks, contingent on the safe reopening of the Strait of Hormuz.
“Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir… and subject to the Islamic Republic of Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump said.
He noted that the pause would allow ongoing negotiations between Washington and Tehran to continue, with both sides “very far along” toward a potential long-term agreement.
In a related statement, Iran’s Foreign Minister Seyed Abbas Araghchi said Tehran would reciprocate if hostilities ceased.
“If attacks against Iran are halted, our powerful armed forces will cease their defensive operations,” he said, adding that safe passage through the Strait of Hormuz would be guaranteed for two weeks under coordination with Iran’s armed forces.
Araghchi also noted mediation efforts from Pakistan’s leadership, highlighting engagements involving Sharif and Munir as part of the de-escalation process.
On March 31, Brent crude prices had rose by 2.38 percent to reach $117.54 per barrel.