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U.S. crude oil prices tumbled Tuesday evening, as the market hoped for a last-minute ceasefire before President Donald Trump’s deadline expires for Iran to reopen the Strait of Hormuz.
The West Texas Intermediate contract for May delivery fell about 4% to $108.61 per barrel by 6:18 p.m. ET.
Trump has vowed to bomb every bridge and power plant in Iran if its leaders do not meet his 8 p.m. ET deadline. The president’s rhetoric took an ominous turn Tuesday morning when he threatened to destroy Iran’s entire civilization.
“A whole civilization will die tonight, never to be brought back again,” Trump said in a social media post. “I don’t want that to happen, but it probably will.”
Pakistan Prime Minister Shehbaz Sharif asked Trump to delay his deadline by two weeks to allow negotiations to continue. Sharif asked Iran to reopen the Strait during that period as a goodwill measure.
White House press secretary Karoline Leavitt told CNBC that Trump “has been made aware of the proposal, and a response will come.”
Oil exports through the Strait have plunged due to attacks by Iran on commercial ships, triggering the largest disruption of crude supplies in history.
About 20% of global oil supplies passed through Strait before the U.S. and Israel attacked Iran on Feb. 28. The narrow sea route connects producers in the Persian Gulf to global markets.
U.S. oil prices have soared more than 60% since the war began. Jet fuel, diesel and gasoline prices have also also surged. Oil CEOs and analysts have warned that fuel shortages will ripple around the world if the Strait does not fully reopen.
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