By Boluwatife Oshadiya, Energy Correspondent | April 13, 2026
Key Points
- Brent crude drops 11.5% to $96.44 per barrel
- Ceasefire optimism eases immediate supply fears
- Ongoing tensions keep market volatility elevated
Main Story
Global oil prices declined sharply last week, with Brent crude falling 11.5% to $96.44 per barrel, as expectations of a temporary ceasefire in the Middle East reduced immediate supply disruption risks.
U.S. benchmark West Texas Intermediate also dropped 11.6% to $98.62, reversing earlier gains driven by fears over restricted access to the Strait of Hormuz, a critical artery for global oil shipments.
The decline followed diplomatic signals suggesting a potential 45-day ceasefire between the United States and Iran, alongside conditional agreements tied to the reopening of key shipping routes. This eased concerns that had earlier pushed prices above $100 per barrel.
However, the market remained volatile as geopolitical tensions persisted. Reports of constrained tanker movements through the Strait of Hormuz and renewed attacks on energy infrastructure in Saudi Arabia continued to limit supply flows and cap price declines.
What’s Being Said
“The market is reacting to headlines rather than fundamentals at this stage,” said an international commodities analyst.
“While ceasefire talks provide short-term relief, underlying geopolitical risks remain unresolved and continue to support prices,” the analyst added.
What’s Next
- Outcome of U.S.-Iran negotiations will determine near-term price direction
- Shipping activity in the Strait of Hormuz remains a key supply indicator
- Further attacks on energy infrastructure could trigger renewed price spikes
The Bottom Line:
Oil prices may have corrected on ceasefire optimism, but unresolved geopolitical risks in the Middle East continue to underpin a fragile and highly reactive energy market.
