Oil prices drop to 3-month low as US, Iran reach agreement to reopen Hormuz

Oil prices slipped to their lowest since March on Monday, June 15, 2026, after United States President Donald Trump ‌and Iran’s deputy foreign minister said they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.

Brent crude futures fell $4.08, or 4.7%, to $83.25 a barrel by 0415 GMT, while U.S. West Texas Intermediate was at $80.53, down $4.35, or 5.1%.

Both contracts ​fell to their lowest levels since March 10 on Monday after tumbling more than 3% on Friday.

The U.S. and ​Iran will sign a memorandum of understanding in Switzerland on Friday, said the prime minister of ⁠Pakistan, whose country has served as a mediator.

Trump said on Sunday that the Strait of Hormuz would be open “toll ​free” and that a U.S. naval blockade of Iranian ports would also end.

Iran’s semi-official Mehr news agency said the draft ​deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements.

US, Iran agree to end war, sign deal in Switzerland on Friday

E4 nations, which ​include the UK, France, Germany, and Italy, said on Sunday the countries were prepared to lift ​sanctions on Iran ⁠in response to steps on its nuclear programme.

“The geopolitical risk premium that had been built into crude is now being unwound quite aggressively as traders price in the prospect of restored oil flows,” the chief market analyst at KCM Trade, Tim Waterer, said.

The ​world has lost millions of barrels of oil and gas supply since the war closed the Strait of Hormuz, a ​chokepoint for a fifth of the world’s oil and liquefied natural gas supplies, for more than three months.

Investors are also watching cautiously how ‌quickly ⁠Middle Eastern producers can resume oil production and exports following damage from the war and whether more ships will enter the region.