Oil Plunges 15% and Global Stocks Surge on Ceasefire News

Oil prices plunged approximately 15% on Wednesday, the largest single-day drop since the 1991 Gulf War, after the United States and Iran agreed to a two-week ceasefire that includes reopening the Strait of Hormuz. West Texas Intermediate crude fell below $98 a barrel, down from $115, while Brent crude dropped to $95.31. Global stock markets rallied sharply in response. Japan's Nikkei 225 gained 5%, South Korea's Kospi surged 5.9%, and S&P 500 futures leapt more than 2%. The US dollar weakened broadly as the safe-haven trade unwound. Analysts cautioned that the ceasefire is only two weeks long and that prices could reverse if talks in Islamabad fail.

8 April 2026 · 4 sources · AI-generated, human-reviewed

Oil prices plunged approximately 15% on Wednesday, the largest single-day fall since the 1991 Gulf War, after the United States and Iran agreed to a two-week ceasefire.

Why it matters: The Strait of Hormuz carries roughly 20% of global oil supplies. Its closure since early March had driven oil above $115 a barrel and pushed petrol prices past $4 a gallon across the United States. The ceasefire agreement to reopen the strait triggered an immediate repricing of the war premium.

Oil markets

West Texas Intermediate crude fell below $98 a barrel, down from $115 at Tuesday’s close. Brent crude declined 12.8% to $95.31. Both benchmarks had more than doubled since the war began on 28 February.

The drop erased roughly three weeks of war-driven gains in a single session.

Stock market rally

Global equities surged. Japan’s Nikkei 225 gained 5%, South Korea’s Kospi rose 5.9%, and Hong Kong’s Hang Seng added 2.6%. S&P 500 futures leapt more than 2% in overnight trading.

The US dollar weakened broadly as investors unwound safe-haven positions. The euro, yen, and pound all strengthened against the greenback.

Caution ahead

Analysts warned the rally may be fragile. The ceasefire lasts only two weeks, and talks in Islamabad on Friday will determine whether a permanent agreement is possible.

“Markets are pricing in peace, but we are one failed negotiation away from $130 oil,” said a senior commodities strategist at Goldman Sachs, according to Reuters.