International oil prices plunged after U.S. President Donald Trump said he would conditionally postpone military action against Iran. Hopes for easing tensions in the Middle East were immediately reflected in the market.
According to Bloomberg, as of 8:05 a.m. on the 8th (Korea time), West Texas Intermediate (WTI) May delivery futures fell 12.49% from the previous transaction day to $98.84 per Barrel. This is the first time since on the 2nd that WTI has fallen below $100 intraday. Oil prices plunged vertically right after President Trump's remarks. The market says the "war premium," which had surged on expectations of a possible closure of the Strait of Hormuz, was stripped out all at once.
At the same time, U.S. stock futures rose across the board. Dow Jones futures, Standard & Poor's (S&P) 500 futures, and Nasdaq 100 futures all gained around 2%, showing a rapid rebound in risk appetite.
At 6:32 p.m. on the 7th (local time), President Trump said on his social media (SNS) Truth Social, "On the condition that Iran agrees to the full, immediate, and safe opening of the Strait of Hormuz, I agree to suspend bombing and attacks against Iran for two weeks." He added, "This measure will be a cease-fire that applies to both sides," emphasizing it as a de facto "conditional cease-fire."
Markets say the move has eased fears of a full-scale clash in the short term, but the final variable still depends on Iran's choice. In fact, if the Strait of Hormuz is opened stably, oil prices could continue to fall, but if the deal collapses, a sharp rebound cannot be ruled out.