Oil prices drop and stocks rally after Trump’s ceasefire announcement

Originally Published: 07 APR 26 19:52 ET

By Ramishah Maruf, Samantha Delouya, CNN

(CNN) — Oil prices plummeted Tuesday after President Donald Trump agreed to a two-week ceasefire with Iran.

West Texas Intermediate crude futures declined more than 15% after hours to less than $95 a barrel.

Meanwhile, US stock futures jumped. Dow futures leapt more than 900 points, or 1.95%, S&P 500 futures increased 2.13%, and Nasdaq futures rose 2.46% in after hours trading.

Trump agreed to the ceasefire less than two hours before his 8 p.m. deadline to destroy a “whole civilization.” He said the agreement hinged on the reopening of the Strait of Hormuz.

“We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate,” Trump posted on Truth Social on Tuesday night.

The war in the Middle East – and the effective closure of the crucial Strait of Hormuz – has caused the biggest oil supply shock on record, affecting roughly 12 million to 15 million barrels of crude oil a day. Both the futures and physical oil markets had signaled major warning signs.

But whether the Strait can simply return to business is up in the air. Iran also claimed victory and said its military will regulate passage through the Strait of Hormuz, which would grant Iran “unique economic and geopolitical standing,” a statement from Iran’s Secretariat of the Supreme National Security Council said.

The ceasefire “hasn’t really clarified anything when it comes to the Strait,” Patrick De Haan, head of petroleum analysis at GasBuddy, said on X Tuesday.

The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.