Oil just had a day for the history books. And not the kind energy investors were hoping for.

West Texas crude crashed nearly 17% on Wednesday. It fell to about $93 a barrel. Brent crude dropped to around $91. This was the biggest one-day fall since the 1991 Gulf War.

The Ceasefire Changed Everything

The sell-off started when Trump announced a two-week ceasefire with Iran. The deal requires Tehran to reopen the Strait of Hormuz. This narrow waterway was shut down for five weeks.

Before the truce, oil had been stuck above $110. Gas prices were climbing. And inflation fears were building fast.

One announcement wiped all of that out in a matter of hours.

Don't Celebrate Too Fast

Here's the thing - $93 oil is still pricey. Before the Iran war started, crude was trading near $70.

Jorge Leon from Rystad Energy told Yahoo Finance the market is still building in risk. The market went from $110 to $95 - a big drop, but prices are still elevated. The market is being careful about a weak ceasefire.

Wood Mackenzie said Middle East makers shut down about 11 million barrels per day during the war. Restarting that work could take six to nine months - even if the ceasefire holds.

What to Watch

Oil shipping won't snap back overnight. Tanker operators need confidence the strait is truly safe before they start running full routes again. Repairs to damaged refineries and LNG terminals in the Gulf could take months more.

The price crashed. The supply chain hasn't caught up yet.