World oil prices on Monday, June 15, 2026 somersaulted and crashed to its lowest level since March following the announcement by President Donald Trump of the United States that there is a concrete deal reached with Iran officials.
Trump also announced a deal to end the war and resume traffic through the Strait of Hormuz.
Following the announcement, brent crude immediately fell $4.08, or 4.7%, to $83.25/barrel at about 0415 GMT.
Similarly, the US WTI slumped by $4.35, or 5.1%, to $80.53. Market analysts said that both benchmarks hit their lowest levels since March 10, 2026 thereby extending Friday’s 3%+ slide.
This was as the Prime Minister of Pakistan Shehbaz Sharif said the US and Iran will sign a memorandum of understanding in Switzerland on Friday.
President Trump declared that the Strait of Hormuz would reopen “toll free” just as a US Naval blockade of Iranian ports would end immediately.
Trump, who posted on his Truth Social, confirmed that the deal with Iran “is now complete,” saying; “Congratulations to all!”
Trump further said: “I fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade.
“Ships of the World, start your engines. Let the oil flow!”
Iran’s Mehr news agency reported that the draft deal calls for the Strait to reopen within 30 days under Iranian arrangements.
Following the deal, the E4 — UK, France, Germany, Italy — said on Sunday that they are ready to lift sanctions on Iran in response to nuclear steps.
A chief market analyst at KCM Trade, Tim Waterer said that the geopolitical risk premium that had been built into crude is now being unwound quite aggressively as traders price in restored oil flows.
The Strait of Hormuz handles about 20% of the world’s oil and LNG, thus its closure for over three months wiped millions of barrels from global supply and pushed prices up.
Expectedly, traders have now shifted focus to how quickly Middle East producers can restart output as well as ensure that shipping traffic returns safely.
The Friday’s MoU signing in Switzerland will set the timeline, but until then, oil markets are pricing in peace.
Pakistan’s Prime Minister Shehbaz Sharif says the US-Iran deal is “now in place” with a signing ceremony scheduled for Friday, June 19, 2026, in Switzerland.
