Oil Prices Nosedive Upon News of Iran Ceasefire

RedState 

Don't necessarily expect this to show up at the gas pump instantaneously, but there's good news on the oil price front following President Trump's announcement that a tentative ceasefire agreement had been reached with Iran. 

It's probably too soon to call this a done deal — lots of i's to dot and t's to cross before that can be said. And...this is Iran we're talking about. 

Still, following the President's announcement of the potential deal, oil prices took a precipitous drop, marking the biggest one-day nosedive since 1991 and the Gulf War.

Crude oil prices dropped sharply Tuesday evening, falling well under $100 per barrel after President Trump said the U.S. agreed to a two-week ceasefire with Iran that Pakistan had proposed.

Why it matters: It's the biggest one-day free fall in oil prices since the 1991 Gulf War.

Driving the news: The global benchmark Brent crude futures price fell roughly 16% to about $93 a barrel. But it's still far above the roughly $73 mark right before the war began at the end of February.

• WTI, the U.S. benchmark, was down about 19% to about $92 a barrel.

Stock futures also jumped following the announcement. 

Futures for the S&P 500 rose 2.4%.

...

Earlier in the day, the U.S. stocks swung sharply as the deadline set by Trump to destroy Iranian power plants and bridges neared. 

The S&P 500 fell as much as 1.2% after Trump had threatened that a “whole civilization will die tonight, never to be brought back again” if Iran did not meet his deadline at 8 p.m. Eastern time to open the Strait of Hormuz. But stocks rallied at the end of trading after Pakistan’s prime minister urged Trump to extend his deadline for another two weeks and asked Iran to open up the strait for two weeks.

Whether and to what degree this development will impact domestic fuel prices remains to be seen, but for Americans who've been nervously eyeing the price at the pump over the last six weeks, the sharp drop in oil prices undoubtedly comes as welcome news. 

This is a developing story.