Oil, Products Slide on Iran Cease-Fire Hopes

Crude, gasoline, and diesel futures fall sharply as investors anticipate end to Middle East conflict

Apr. 1, 2026 at 4:25pm

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Crude oil and refined product futures declined sharply on Wednesday as investors hoped that the conflict between the U.S. and Iran could soon come to an end. President Trump said Iran's new leader had requested a ceasefire, though analysts cautioned that the two sides remained far apart on a deal. The market is also digesting the latest U.S. inventory data, which showed a rise in crude supplies and declines in gasoline and distillate stocks.

Why it matters

Oil and fuel prices have been highly volatile amid the ongoing conflict between the U.S. and Iran, which has disrupted global energy supplies. Any signs of a potential ceasefire or diplomatic resolution could lead to a significant drop in prices and ease pressure on consumers and businesses.

The details

May NYMEX West Texas Intermediate crude contracts were down around $1.50 to $99.90/bbl, while June WTI fell $1.95 to $91.20/bbl. London-based June Brent was $1.90 lower to $102.05/bbl and July Brent was down $2.45 to $93.75/bbl. May RBOB gasoline was about 8.4 cents lower to $3.12/gal and June RBOB was off 7.95 cents to $2.976/gal. May ULSD was down 6.6 cents to $4.045/gal and June ULSD was 2.75 cents lower to $3.713/gal.

  • On Wednesday morning, President Trump said Iran's new president had requested a ceasefire.
  • The latest U.S. inventory data, released this week, showed a rise in crude supplies and declines in gasoline and distillate stocks.

The players

Donald Trump

The former president of the United States, who said Iran's leader had asked for a ceasefire in the ongoing conflict.

Fatih Birol

The executive director of the International Energy Agency, who is assessing whether the IEA should advise member countries to further tap oil reserves to address the global energy crisis.

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What they’re saying

“Trump said in an early Wednesday social media post that Iran's new president had just asked for a cease fire, while adding that he would direct the U.S. military to continue its attack on the Islamic republic until the Strait of Hormuz is open for oil traffic.”

— Donald Trump, Former U.S. President

“However, political analysts said Washington and Tehran remained far apart from reaching a deal to end the one-month long conflict.”

— Political Analysts

What’s next

The International Energy Agency is currently assessing whether it would advise its member countries to further tap oil reserves to tackle the global energy crisis.

The takeaway

The potential for a ceasefire between the U.S. and Iran has sparked hopes of a resolution to the conflict, which could lead to a significant drop in oil and fuel prices. However, analysts caution that the two sides remain far apart on a deal, and the IEA is considering further coordinated action to address the ongoing energy crisis.