Market reaction is immediate
Oil prices dropped sharply after the ceasefire announcement, with the first effects showing up at once. WTI crude fell by as much as 18%, sinking well below the $100-a-barrel mark to $93.03.
The gas market moved in the same direction. At the opening, TTF contracts in Amsterdam, the benchmark European market, fell by more than 19% to €43 per megawatt hour.
The sell-off follows the two-week truce between the United States and Iran, which is tied to the reopening of the Strait of Hormuz. Because apparently energy markets do not need much encouragement to panic when geopolitics shifts.
