Iran-US Ceasefire Triggers One Of Oil’s Largest Single-Day Crashes In History, Crude Down 20%

Last Updated:April 08, 2026, 05:45 IST

$26 has been wiped from the price of a barrel in hours- the biggest single-day collapse since Covid destroyed global demand in April 2020.

The West Asia conflict, which began on February 28 with US and Israeli strikes on Iran, disrupted global oil supply.

Oil crashed 20% on Tuesday, from a session high of $117.63 to $91.05, as a US-Iran ceasefire announcement detonated the war premium that had gripped crude markets for forty days. $26 has been wiped from the price of a barrel in hours- the biggest single-day collapse since Covid destroyed global demand in April 2020.

At the heart of the crash is the Strait of Hormuz- the narrow waterway which is the single most critical oil chokepoint through which roughly a fifth of the world’s traded crude passes daily. Since the conflict began forty days ago, Iranian threats to close or restrict the strait had brought global oil supply to a grinding halt, sending prices surging and putting energy markets on emergency footing worldwide.

Read more: Tehran Declares Victory As US-Iran Ceasefire Takes Hold; Talks Set For Islamabad On April 10

What Trump Has Said On Ceasefire

Trump announced the ceasefire on Truth Social, saying Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir had personally asked him to stand down strikes planned for Tuesday night. He said the US had “already met and exceeded all military objectives” and had received a “10-point proposal from Iran” which he called “a workable basis on which to negotiate.” Talks are set for Islamabad on April 10.

What Iran Said On Ceasefire

Iran’s Supreme National Security Council declared “nearly all objectives of the war have been achieved” and said the enemy had “been begging for a ceasefire for over a month” while Iran repeatedly refused but it was emphatic on one point: “This does not mean the end of the war.”

Read more: Iran To Allow Safe Passage Through Hormuz For 2 Weeks After Trump Agrees To Pause Strikes

Iran’s ten-point plan, which it says it authored and passed to Washington through Pakistan, is sweeping- demanding US troop withdrawal from all regional bases, full sanctions relief, reparations, controlled passage through Hormuz under Iranian coordination and all terms locked into a binding UN Security Council resolution.

Read More