Crude oil prices tank to under $95/bbl after Trump’s two-week ceasefire deal with Iran, COMEX gold up 3%

Crude oil prices in the global market dropped to under $95 per barrel (bbl) level during the early market hours on Wednesday, April 8, after US President Donald Trump announced a two week ‘double sided ceasefire’ deal with Iran in the sixth week of the US-Iran conflict.

“I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE!” said Trump in his recent post on Truth Social.

Data showed that Brent crude oil prices dropped to a low of $91.72 per bbl during the early hours on Wednesday after Trump’s key announcement related to the US-Iran conflict. The oil prices remained highly volatile as the key energy source hit a high of $111.8 per bbl during Tuesday’s commodity market session.

The West Texas Intermediate (WTI) crude oil futures dropped to a low of $94.09 per bbl during the early hours on India time Wednesday. The prices hit a record high of $117.57 per bbl during Tuesday’s commodity trading hours on the backdrop of the heightened tensions over Trump’s military strike deadline.

Crude oil prices today

As of 7:23 am (IST), the Brent crude oil prices were trading 9.79% lower at $94.84 per bbl on Wednesday, compared to $105.13 per bbl at the previous commodity market close, according to Investing.com data.

The US-based WTI crude oil futures were trading 13.89% lower at $97.26 per bbl as of 7:24 am (IST), compared to $112.95 per bbl at the previous market close, as per the exchange data.

Trump’s ceasefire deal

At 4 am (IST) on April 8, US President Donald Trump in a Truth Social post announced that based on the conversations with Pakistan Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, he decided to put a hold on the “destructive forces” which were set to attack Iran at the end of Tuesday, 8 pm (EDT) deadline to open Strait of Hormuz.

“The reason for doing so is that we have already met and exceeded all military objectives, and are very far along with a definitive agreement concerning longterm peace with Iran, and peace in the Middle East,” said Trump in his post.

Donald Trump also acknowledged that the United States has received a 10-point proposal from Iran, and “believe it is a workable basis on which to negotiate,” as the Gulf nation has nearly agreed to all of the points of the US.

“A two-week period will allow the Agreement to be finalised and consummated,” said Trump.

In a separate post, Trump also shared a note from Iran’s Foreign Minister Seyed Abbas Araghchi, which claimed that the Gulf nation is thanking Pakistan for its contribution in negotiating the US-Iran conflict.

The Foreign Minister also allegedly said that if the attacks against Iran are halted, then the country’s ‘Powerful Armed Forces’ will cease their defensive operations. He also said that for the next two weeks, “safe passage” will be provided through the Strait of Hormuz in coordination with their defence forces.

Gold price today

The New York Mercantile Exchange-based COMEX gold prices were trading 3.4% higher at $4,845 per ounce as of 10:09 pm (EDT) on Tuesday, April 7, compared to $4,686.70 per ounce at the previous commodity market close, according to the official data.

The gold prices were during the trading session, over heightened demand for safe haven assets amid a fall in the price of the benchmark US dollar amid Trump’s ceasefire deal.

Data collected from Bloomberg’s US dollar spot index (DYX) showed that the greenback dropped significantly under the 100 psychological level, trading 0.93% lower at 98.931 as of 10:11 pm (EDT) on Tuesday, compared to the previous market close level of 99.858.

As there is a temporary relief in the market over the ceasefire deal, the demand for the US dollar has dropped, in turn increasing the demand for assets like gold. Gold and US dollar have an inverse relationship, as buyers are able to buy more of the commodity gold whenever the price of the greenback falls in the market, fuelling a buying spree.

COMEX silver was also trading 6.48% higher at $76.65 per ounce as of 10:17 pm (EDT), compared to the previous market close of $71.987, according to the exchange data.