Oil prices fall on reports of a U.S. ceasefire proposal with Iran

MW Oil prices fall on reports of a U.S. ceasefire proposal with Iran

By Nora Redmond

President Donald Trump is reportedly suggesting a one-month ceasefire.

Oil prices slumped on Wednesday after reports emerged that the U.S. is planning to end the war in Iran.

West Texas Intermediate contracts (CL.1) (CLK26) fell 5% to $87.65 a barrel, while Brent crude contracts (BRN00) declined 5% to $95.23 a barrel following reaching $110 earlier this week. It comes after the New York Times reported on Tuesday that President Donald Trump sent Iran a 15-point peace plan to bring the conflict to a close.

Israel's Channel 12, which first reported the development, said on Tuesday that the president was suggesting a one-month ceasefire, during which time both governments would discuss a plan. The broadcaster reported that the plan includes demands such as Iran dismantling any existing nuclear capabilities, a commitment to never working toward achieving nuclear weapons and keeping the Strait of Hormuz open and allowing it to be a "free maritime zone."

In return, Iran would have all sanctions removed, the threat of new sanctions removed and U.S. support in creating a civilian nuclear program for electricity production.

The regime seemingly dismissed the proposal as a "strategic defeat." Early on Wednesday, Ebrahim Zolfaghari, the spokesman for Iran's armed forces said, "someone like us will never come to terms with someone like you. Not now, not ever," according to state news agency IRNA. At no point were the U.S. or Trump directly mentioned.

"In terms of the latest on the conflict, investors were trading headlines once again, with oil prices clearly moving on the back of different reports," Jim Reid, head of global macro research at Deutsche Bank, wrote in a note on Wednesday. He added that "the news helped take some of the risk premia out of oil markets."

The point is less the content of the proposals than the signal that President Donald Trump wants a deal, said Andrew Bishop, global head of policy research at Signum Global Advisors. He also pointed out the U.S. proposal has less onerous demands and more generous carrots than pre-war positions.

-Nora Redmond

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March 25, 2026 05:39 ET (09:39 GMT)

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