Oil prices dropped over 10% on April 8 following the announcement of a two-week ceasefire between the United States and Iran, which helped alleviate concerns about potential supply disruptions in the Middle East.

As of 8:00 a.m., Brent crude futures for June delivery had fallen $14.31, or 13.1%, to $94.96 per barrel on the London ICE Futures Europe. On April 7, the contract slipped $0.50, or 0.5%, settling at $109.27 per barrel, The Caspian Post reports, citing foreign media.

U.S. West Texas Intermediate (WTI) crude for May delivery dropped $16.20, or 14.3%, to $96.75 per barrel in electronic trading on the New York Mercantile Exchange. In the previous session, WTI rose $0.54, or 0.5%, to $112.95 per barrel.

The sharp declines follow Donald Trump's announcement that Washington had agreed to a two-week ceasefire with Tehran, contingent on reopening the Strait of Hormuz, a vital corridor for global oil shipments.

“This is a good start that could lay the groundwork for the long-term reopening of the strait, but there are still many issues to be resolved,” said Tony Sycamore, an analyst at IG.

Still, analysts warned that risks remain elevated.

"Even with a ceasefire, Iran may threaten shipping in the Strait of Hormuz more frequently, and the market will factor in a higher risk of such actions going forward," said Saul Kavonic of MST Marquee.