Oil prices fell sharply—by nearly 15%—after President Donald Trump delayed planned military strikes on Iran and signaled a potential two-week ceasefire tied to reopening the Strait of Hormuz.

Iran’s foreign minister said shipping through the strait would be allowed during this period under coordination with its military, and Tehran agreed to enter negotiations with the United States.

Markets reacted positively, with global stocks rising, bond yields easing, and gold prices increasing, while major oil benchmarks saw steep declines.

Despite the immediate relief, uncertainty remains about whether talks will lead to a lasting agreement and how the strait will be managed after the temporary period ends, The Guardian has reported.

The developments follow weeks of conflict that had disrupted global energy flows and pushed oil prices higher due to concerns over supply through the critical waterway.