Oil and gas prices both plummeted after the US and Iran agreed to a two-week ceasefire aimed at halting the American-Israeli military campaign in exchange for a reopening of the Strait of Hormuz.

Brent fell as much as 17 per cent before trading around $92 a barrel, while European natural gas futures posted their biggest decline in more than two years, shedding as much as 20 per cent.

Prices of refined fuels such as diesel and jet fuel — which had been the biggest threats to global inflation — also tumbled.

Much will now depend on how quickly transit through Hormuz can resume. It’s the route for about a fifth of global oil and liquefied natural gas supplies, and the near-halt of traffic has pushed prices for real-world crude to a record.

Faced with an unprecedented disruption to flows, the world is rapidly running down supply buffers to offset the loss. 

“It would take something truly tremendous for us to get back down below $80 a barrel,” Jason Schenker, president and chief economist at Prestige Economics LLC, told Bloomberg Television. “But almost anything going wrong in these ceasefire talks could very quickly put us back above $100.”

President Donald Trump said Wednesday that the US is discussing tariff and sanctions relief with Iran, according to a post on his Truth Social network. Washington waived some restrictions on Iranian oil during the conflict in a bid to keep markets well-supplied. A comprehensive package of relief could bring more barrels to Western buyers in time.

Trump also said earlier that the US would help ease the buildup of traffic in Hormuz. For now, the strait appears to remain largely blocked, with just seven ships seen exiting the region since Tuesday morning, while three entered, according to tracking data compiled by Bloomberg. 

While the ceasefire is welcome, “it is highly unlikely that trade into the Gulf will simply resume,” said Neil Roberts, head of marine and aviation at insurance organization the Lloyd’s Market Association. “The region remains at heightened risk with none of the underlying tensions resolved.”

It wasn’t clear on Wednesday when the truce would take effect — with reports of ongoing hostilities rife across the Persian Gulf. 

Even once Hormuz transit picks up, the return of energy supplies won’t be instant. Output has been reduced at oil and gas fields, while refineries have curtailed production or shut down. Some of those will take weeks to return to normal. 

In Qatar, which took its giant Ras Laffan LNG complex offline in early March following Iranian attacks, engineers and workers are mobilizing with the aim of resuming production, according to people with knowledge of the matter. Some production could resume over the coming days, though it’s not clear how quickly it could ramp up and any return to significant output would require ships to be able to pass through Hormuz.

Further Talks

American and Iranian delegates are invited to meet in Islamabad on Friday to further negotiate a “conclusive agreement,” Pakistani Prime Minister Shehbaz Sharif — a key mediator — said on X.

The current plan for Hormuz includes allowing Iran and Oman to charge fees on ships passing through, the Associated Press reported, though Oman itself said maritime agreements prevent it from enforcing tolls. 

Iran accepted Pakistan’s ceasefire proposal, with safe passage through the strait possible in coordination with the nation’s armed forces, Foreign Minister Abbas Araghchi said. Israel also agreed to the pause in fighting, but said it didn’t include Lebanon. The Israel Defense Forces subsequently said it had carried out its largest operation against Hezbollah since the start of the war.

The plunge in European gas came shortly after many investors in the fuel had amassed near-record net-bullish positions, leaving the market poised for a slump. In oil, futures tied to Abu Dhabi’s flagship Murban crude dropped as much as 20 per cent, the most since the contract’s launch in 2021.

“In theory, the 10–13 million barrels a day of crude oil and product supply stranded behind the strait should now be gradually released,” said Tamas Varga, an analyst at brokerage PVM. “Whether the pre-March status quo will be re-established depends entirely on whether the truce can be turned into a permanent peace.”

Physical traders remain cautious, waiting for clearer signs the ceasefire will hold before seeking cargoes from the Gulf. Meanwhile, shipowners said they needed to see vessels safely exit the region before sending in tankers. At present, there are more than 800 vessels that have been trapped by the war.

“The ceasefire may create transit opportunities, but it does not yet provide full maritime certainty and we need to understand all potential conditions attached,” said A.P. Moller-Maersk A/S, the world’s second-largest container line.

Trump’s announcement came about 90 minutes before his deadline for Iran to reopen the strait or face a massive bombardment. The lead-up was marked by military escalation and bellicose threats from the US president, including a post saying “a whole civilization will die tonight.”

“This was a market that had been starved of good news,” said Josh Gilbert, an analyst at eToro Ltd. “We’ve seen an instant selloff in crude, pulling back 16 per cent to under $100 as markets price in the prospect of the Strait of Hormuz reopening. It goes to show how much geopolitical risk was baked into crude, and how quickly it can unwind when there’s a credible path to de-escalation.”

More stories like this are available on bloomberg.com

Published on April 8, 2026

The transaction is expected to strengthen SFL’s capital base as it looks to scale across its core lending segments
| Photo Credit:
iStockphoto

MUFG Bank, the Japanese banking giant and subsidiary of Mitsubishi UFJ Financial Group, completed its acquisition of a 20 per cent equity stake in Shriram Finance Ltd (SFL) on Wednesday, subscribing to 471,121,055 shares at ₹840.93 apiece for a total outlay of approximately ₹39,618 crore ₹396.18 billion).

SFL’s board approved the preferential allotment at its meeting on April 8, 2026. The deal, which received clearance from the Competition Commission of India among other regulatory bodies, is described as the largest cross-border investment in India’s financial services sector.

Shriram Finance is India’s second-largest retail non-banking financial company (NBFC), with assets under management exceeding ₹2.91 trillion. Founded in 1979, the Mumbai-headquartered firm operates 3,225 branches, employs over 77,000 people, and serves 9.7 million customers. Its product portfolio spans commercial vehicle loans, MSME loans, gold loans, personal loans, tractor and farm equipment financing, and working capital loans.

For MUFG, the investment extends a global footprint already spanning 2,000 locations across 40 markets. The Tokyo-headquartered group, with roughly 150,000 employees worldwide, has signalled India as a long-term strategic priority, citing SFL’s position in the MSME and retail lending segments as key to that rationale.

SFL’s Executive Vice Chairman Umesh Revankar said the partnership would support access to diversified funding and adoption of global risk management practices. MUFG President Junichi Hanzawa pointed to SFL’s growth potential and framed the deal as part of the group’s broader commitment to India’s economic development.

The transaction is expected to strengthen SFL’s capital base as it looks to scale across its core lending segments.

Published on April 8, 2026

Shares of Tata Steel gained on Wednesday after the company reported strong provisional production and delivery volumes for the fourth quarter and full year FY2026.

The stock settled 3 per cent positive at ₹204.18, after hitting an intraday high of ₹206.40 from its previous close of ₹198.13.

Tata Steel reported its annual crude steel production in India at 23.48 MT in FY26, registering an increase of 8 per cent year-on-year. The growth was primarily driven by the ramp-up at its Kalinganagar plant, partially offset by the shutdown of the ‘G’ blast furnace at Jamshedpur for relining.

On a quarterly basis, crude steel production stood at 6.25 MT in the fourth quarter, up from 5.44 MT in the year-ago period, reflecting a 15 per cent year-on-year rise.

Deliveries remained in line with production growth, with annual deliveries in India reaching a record 22.53 MT. Notably, domestic deliveries crossed 20 MT for the first time, highlighting the company’s strong market presence. In the March quarter, deliveries rose 10 per cent year-on-year, marking the highest-ever quarterly volumes.

Among segments, the automotive and special products vertical recorded its best-ever annual deliveries of around 3.4 MT, supported by a shift towards high-end products, which grew 11 per cent year-on-year. The branded products and retail segment also achieved record volumes of about 7.3 MT, driven by steady performance of established brands.

The industrial products and projects vertical reported deliveries of approximately 7.2 MT, aided by value-accretive segments, including engineering applications such as defence and shipbuilding.

On the international front, Tata Steel Netherlands reported liquid steel production of about 6.7 MT and deliveries of around 6.1 MT in FY26, with fourth-quarter deliveries rising 21 per cent quarter-on-quarter to 1.7 MT. The UK business delivered 2.2 MT during the year, impacted by subdued market conditions, while operations continue to transition towards a 3 MTPA electric arc furnace at Port Talbot.

Tata Steel Thailand posted saleable steel production of 1.33 MT and deliveries of 1.32 MT, with deliveries increasing 11 per cent year-on-year, supported by strong domestic rebar demand.

The strong operational performance across domestic and key international markets lifted investor sentiment, driving the stock higher in early trade.

Published on April 8, 2026