Oil prices fell sharply Wednesday as a fragile ceasefire between the United States and Iran took effect, raising hopes that shipments could resume through the Strait of Hormuz<\/strong>, a chokepoint that normally handles about 20% of the world\u2019s oil supply.<\/p>\n\n\n\n WTI crude<\/strong>, the U.S. benchmark, plunged 16.41%<\/strong> to settle at $94.41 per barrel<\/strong>. Brent crude<\/strong>, the global benchmark, dropped 13.29%<\/strong> to close at $94.75<\/strong>, its lowest settlement since March 11. Both benchmarks recorded their steepest single-day declines since April 2020.<\/p>\n\n\n\n Despite the retreat, prices remain elevated compared with pre-war levels on February 27, when WTI closed at $67 and Brent at $73.<\/p>\n\n\n\n U.S. equities staged a powerful rebound. The Dow Jones Industrial Average<\/strong> soared 1,325 points<\/strong>, or 2.85%, marking its strongest session in a year. The S&P 500<\/strong> rose 2.51%, while the Nasdaq Composite<\/strong> climbed 2.8%.<\/p>\n\n\n\n Markets worldwide followed suit. South Korea\u2019s Kospi advanced 6.87%, Japan\u2019s Nikkei gained 5.39%, and Hong Kong\u2019s Hang Seng added 3.09%. In Europe, Germany\u2019s Dax jumped 5.06% and France\u2019s CAC 40 rose 4.49%.<\/p>\n\n\n\n Wall Street\u2019s volatility index, the VIX<\/strong>, fell 22%, nearing pre-conflict levels.<\/p>\n\n\n\n Questions remain about whether oil tankers will freely transit the Strait of Hormuz. White House press secretary Karoline Leavitt<\/strong> said Iran has assured U.S. officials that traffic is being allowed, despite reports of renewed restrictions following Israeli strikes in Lebanon.<\/p>\n\n\n\n The war triggered what analysts describe as the largest oil supply shock on record, disrupting an estimated 12 to 15 million barrels per day<\/strong>. As of Tuesday, data from Kpler<\/strong> showed 187 tankers carrying 172 million barrels of crude and refined products still inside the Gulf.<\/p>\n\n\n\n Bob McNally of Rapidan Energy Group cautioned that reopening the strait fully is critical. \u201cThat\u2019s the whole ball of wax,\u201d he said, noting that Washington and Tehran appear to have differing interpretations of the agreement.<\/p>\n\n\n\n Iranian outlets reported that Iran and Oman may impose transit fees of $1\u20132 million per tanker. According to Neil Shearing<\/strong> of Capital Economics, such fees would add roughly $1 per barrel to transport costs \u2014 a modest direct effect but potentially a shift in control over a vital shipping lane.<\/p>\n\n\n\n In recent weeks, some shipping companies reportedly paid about $2 million to guarantee safe passage.<\/p>\n\n\n\n U.S. drivers have seen gasoline prices surge $1.18 per gallon<\/strong>, or 40%, to an average of $4.16<\/strong>, according to AAA. Analysts expect modest relief in coming days, though price-tracking firm GasBuddy estimates it could take one to two weeks for national averages to dip below $4.<\/p>\n\n\n\n Oil analyst Andy Lipow<\/strong> noted that crude remains about $30 higher than pre-war levels and that restarting Gulf production could take weeks or months.<\/p>\n\n\n\n Iranian officials have emphasized the truce is temporary, with military branches ordered to pause operations under guidance from the Supreme Leader. President Donald Trump<\/strong> said the ceasefire hinges on reopening the Strait of Hormuz and cited a 10-point proposal from Iran as a workable framework.<\/p>\n\n\n\n Traders are now watching for concrete signs that stranded oil and gas volumes begin moving through the waterway. Early ship-tracking data suggests limited movement, but clearing the backlog may take time.<\/p>\n","protected":false},"excerpt":{"rendered":" Crude Posts Historic Drop Oil prices fell sharply Wednesday as a fragile ceasefire between the United States and Iran took effect, raising hopes that shipments could resume through the Strait of Hormuz, a chokepoint that normally handles about 20% of the world\u2019s oil supply. WTI crude, the U.S. benchmark, plunged 16.41% to settle at $94.41 […]<\/p>\n","protected":false},"author":5,"featured_media":3090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[112],"tags":[1251,1250,1254,1255,1252,1248,1253,1249],"tmauthors":[129],"ppma_author":[117],"class_list":{"0":"post-3089","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stocks","8":"tag-brent-crude-settlement","9":"tag-dow-jones-surge-2026","10":"tag-global-stock-market-rally","11":"tag-iran-us-ceasefire-impact","12":"tag-oil-supply-shock-middle-east","13":"tag-strait-of-hormuz-reopening","14":"tag-us-gas-price-increase","15":"tag-wti-crude-price-drop"},"yoast_head":"\nRelief Rally Lifts Global Stocks<\/h2>\n\n\n\n
Uncertainty Over Strait Reopening<\/h2>\n\n\n\n
Transit Fees and Economic Impact<\/h2>\n\n\n\n
Gas Prices and Consumer Relief<\/h2>\n\n\n\n
Ceasefire Remains Fragile<\/h2>\n\n\n\n