Crude futures fell sharply on Sunday following the announcement that the United States and Iran have reached a peace deal that provides for an immediate and permanent ceasefire as well as the reopening of the Strait of Hormuz.
As of about 18:00 Eastern Time, the West Texas Intermediate for July delivery had dropped by around 4 percent to settle at roughly 81 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery had decreased by about 4 percent, to settle at around 83 dollars a barrel on the London ICE Futures Exchange.
Pakistani Prime Minister Shehbaz Sharif announced early Monday that the U.S. and Iran had reached a peace agreement following intensive negotiations, with an official signing ceremony scheduled for June 19 in Switzerland.
In a statement on X, Sharif said both sides had declared the "immediate and permanent termination of military operations on all fronts, including in Lebanon."
U.S. President Donald Trump said Sunday that the U.S.-Iran peace deal "is now complete" and he has authorized the toll-free opening of the Strait of Hormuz and the immediate removal of the U.S. naval blockade against Iranian ports.
"The Deal with the Islamic Republic of Iran is now complete," Trump wrote on his Truth Social. "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade."
Iran's Supreme National Security Council (SNSC) released a statement early Monday, confirming the country had reached a MoU with the U.S.
Since the U.S. and Israel launched military operations against Iran in late February, disrupted shipping in the Strait of Hormuz has drastically tightened oil supply, resulting in soaring international oil prices.
Crude futures plunge on announcement of US-Iran peace deal
