Crude oil prices tumbled Monday after President Trump announced the U.S.-Iran deal that will reopen the Strait of Hormuz, sending relief through global energy markets after months of wartime disruption.
Brent crude, the global benchmark, fell 4.8 percent in Asian trading to $83.18 a barrel, while U.S. crude dropped 5.6 percent to $80.13 as traders reacted to the prospect of oil shipments moving again through the critical waterway.
Pakistan, which has been mediating between Washington and Tehran, said the agreement will be formally signed Friday, June 19, in Switzerland. Pakistani Prime Minister Shehbaz Sharif announced the planned ceremony, while Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed on state television that a deal with the United States had been finalized.
Trump celebrated the breakthrough on social media with a direct message to markets and producers:
"let the oil flow!"
Strait of Hormuz Reopening
The Strait of Hormuz had been effectively closed since shortly after the United States and Israel launched airstrikes on Iran on February 28, sending energy markets into months of turbulence. Tehran had threatened to strike vessels passing through the narrow shipping lane, where roughly 20 percent of the world’s oil and liquefied natural gas normally moves.
The shutdown helped push Brent crude from about $70 a barrel before the conflict to roughly $120 at the height of the war, hammering energy-dependent economies and raising fears of broader inflation.
Analysts Expect Further Relief
Energy analysts cautioned that shipping through the strait may take time to fully normalize, with mines, tanker backlogs and loading operations still posing logistical hurdles.
Even so, the direction of travel was clear: Hormuz is reopening, oil is moving back into the market, and Americans will soon begin to see relief at the gas pump.
MXM News Exclusive
Original headline: Crude oil prices are already falling!