The Financial Post reports in its Friday edition that oil markets dropped over $18 (U.S.) a barrel following the announcement of a ceasefire in the Iran war. A Postmedia dispatch to the Post reports that Enverus's Al Salazar called the 16-per-cent drop in benchmark U.S. crude oil prices as a "knee-jerk reaction." He said there are important issues to clarify. Markets have moved into a higher price band since the war began. It is uncertain who controls the Strait of Hormuz and when Gulf shipments will increase significantly. "Call it a repositioning," Mr. Salazar said of Wednesday's sharp price drop. He added: "It doesn't take away from the fact that you still have physical shortages of oil in Asia and Europe. Pre-war normal is still maybe three to six months out." After previously vowing to bomb Iran "back to the stone ages" if it did not reach an agreement with the United States by Tuesday evening, President Donald Trump announced the countries had consented to a "doublesided" ceasefire. He said he would pause attacks on Iran for two weeks as the agreement terms are finalized, though signs of its fragility were evident. Oil prices are still up more than 40 per cent since the end of February.