Oil prices plummeted by as much as 15% to 20% today, Wednesday, April 8, 2026, dropping well below the $100 per barrel mark. This massive sell-off was triggered by a sudden de-escalation in Middle East tensions.
Key Drivers of the Crash
US-Iran Ceasefire: President Trump announced a two-week provisional ceasefire with Iran. This deal was brokered just hours before a US-imposed deadline that threatened significant strikes against Iranian infrastructure.
Reopening of the Strait of Hormuz: As part of the agreement, Iran committed to ensuring safe passage through the Strait of Hormuz for the duration of the ceasefire. Since roughly 20% of the world's oil supply passes through this narrow waterway, the news immediately removed the "war risk premium" that had been propping up prices.
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