The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By George Hay

LONDON, April 8 (Reuters Breakingviews) - Oil plunged to $95 a barrel after Washington and Tehran agreed a two-week ceasefire. In a best-case scenario it could take months to restore traffic in the Strait of Hormuz. Even then Iranian tolls, restocking depleted reserves and fears of future disruption will push up prices.

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CONTEXT NEWS

Brent crude oil fell by 13% to $95 per barrel on April 8, as of 0819 GMT, after U.S. President Donald Trump said on April 7 he had agreed to a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz.

"This will be a double sided CEASEFIRE!" Trump wrote on social media, after posting earlier on April 7 that "a whole civilization will die tonight" if his demands were not met.

Iran said on April 7 that transit through the Strait of Hormuz would be possible for two weeks in coordination with Iranian armed forces, according to a statement by Foreign Minister Abbas Araqchi.

The two-week plan includes allowing both Iran and Oman to charge fees on ships transiting through the Strait of Hormuz, the Associated Press reported on April 8, citing a regional official. The official said Iran would use the money it raised for reconstruction, the AP reported.