Crude Futures Plunge $12 to $100.90 after Trump Announces Two-Week Iran Cease-Fire
US West Texas Intermediate futures dropped $12.04 to $100.90 per barrel early Wednesday after President Trump announced a two-week cease-fire with Iran delaying planned military action. Meanwhile real-world Brent crude costs hit record highs, underscoring acute stress in the physical oil market.
1. Cease-Fire Deal Spurs Heavy Futures Selloff
WTI crude futures collapsed $12.04 per barrel to $100.90 following the US two-week cease-fire deal with Iran, which postponed planned military action and extended time for negotiations. Earlier in the session, futures had already fallen $4.45, or 3.94%, to $108.50 as the deadline for Iran to reopen the Strait of Hormuz approached.
2. Physical Brent Prices Reach Record Highs
While futures declined, physical Brent crude costs surged to record levels, highlighting acute stress in the real-world oil market caused by ongoing geopolitical risks and potential supply disruptions around key shipping lanes.
3. Outlook for Short-Term Pullback
Technical analysis suggests the recent overextension in crude prices may prompt a near-term pullback before further gains, with Fibonacci retracement and ABCD patterns indicating potential support zones that traders will monitor for BNO holdings.