-- Crude oil futures plummeted below $100/bbl in after-hours trading on Wednesday after the US and Iran agreed to a two-week ceasefire that allows the opening of the Strait of Hormuz, but the fragile truce has not led to a breakthrough in tanker traffic.
Front-month West Texas Intermediate crude futures tumbled 14.56% to $96.51 per barrel, while Brent futures slumped by 11.49% to $96.72/bbl.
US crude stockpiles rose by 3.1 million barrels to 464.7 mmbbls in the week ended Apr. 3, the Energy Information Administration said in its weekly report on Wednesday. The agency said crude inventories are now about 2% above the five-year average for this time of year.
Oil plunged below $100/bbl after the US and Iran agreed to a two-week ceasefire, "expected to halt military strikes in exchange for Tehran reopening the Strait of Hormuz," Janiv Shah, vice president, commodity markets, oil, Rystad Energy, said.
On Wednesday, Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, alleged that the US had violated the two-week ceasefire agreement.
"The deep historical distrust we hold toward the United States stems from its repeated violations of all forms of commitments - a pattern that has regrettably been repeated once again," Ghalibaf said in a statement via a social media post on X.
Ghalibaf alleged that the violations are Israel's continued attacks on Lebanon, the entry of a drone into Iranian airspace, and the denial of Tehran's right to enrich uranium.
Meanwhile, two ships have passed through the Strait of Hormuz since Iran agreed to reopen the waterway as part of a ceasefire deal, maritime monitor Marine Traffic says.
Iran reportedly closed the Hormuz on Wednesday and fired dozens of missiles across the Arabian Gulf in response to strikes at its Lavan oil refinery and Israeli attacks on Lebanon. Israel Defense Forces posted on X that it completed the largest coordinated strike across Lebanon since the start of the Middle East conflict, targeting Beirut, Beqaa and southern Lebanon.
Iran, in response, reportedly attacked Saudi Arabia's East-West Pipeline and oil facilities operated by Kuwait Petroleum hours after the ceasefire was agreed.
However, during a press briefing on Wednesday, White House Press Secretary Karoline Leavitt maintained that an uptick in vessel traffic has been observed and that the US is continuously monitoring the strait.
Leavitt also said President Trump is dispatching a delegation to Islamabad for talks this weekend, led by Vice President JD Vance and including US special envoy Steve Witkoff and Jared Kushner.
"The first round of those talks will take place on Saturday morning, local time, and we look forward to those in person meetings," she said.