Oil prices plunged early Wednesday following a news report that the United States' conflict with Iran would end in the near future and after President Donald Trump paused his "Project Freedom" operation.

The sudden change comes after gas prices rose Monday to a national average of nearly $4.50 a gallon.

The markets reacted to a report from Axios that officials in the United States and Iran were working on "a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations."

The price of U.S. crude oil by 12%, to below $90 per barrel, and international Brent crude oil was down 11%, to below $100 per barrel, according to NBC News. Wholesale gas prices dropped 7%.

Trump on Tuesday announced the end of Project Freedom – the U.S. effort to secure the safe passage of ships through the Strait of Hormuz, a major oil and gas shipping channel off the coast of Iran. Also on Tuesday, Secretary of State Marco Rubio said the country's military offensive campaign against Iran, Operation Epic Fury, has ended. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.