Oil slips as US and Iran agree to halt war, reopen Hormuz

TEHRAN, June 15, 2026 – Oil prices fell to their lowest level since March after the US and Iran reached an initial deal to end the war and reopen the Strait of Hormuz to maritime traffic, Reuters reported on Monday.

Brent crude futures dropped USD 4.08, or 4.7%, to USD 83.25 a barrel by 4.15am GMT, while US West Texas Intermediate fell USD 4.35, or 5.1%, to USD 80.53. The US and Iran are expected to sign an MoU in Switzerland on Friday, with Iran’s Mehr news agency reporting that the draft deal calls for the Strait of Hormuz to reopen within 30 days under Iranian arrangements.

US President Donald ‌Trump said on social media that “The Deal with the Islamic Republic of Iran is now complete” shortly after Pakistani Prime Minister Shehbaz Sharif announced a deal had been struck. Pakistan has been serving as a mediator between the US and Iran in the war.

The Strait of Hormuz, a chokepoint for a fifth of the world’s oil and LNG supplies, had been closed for more than three months, cutting millions of barrels of oil and gas supply. Iran’s deputy foreign minister, Kazem Gharibabadi, said a wider agreement would be negotiated during a 60-day ceasefire period.

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

Photo by Ian Simmonds

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