Oil falls below $80 as Hormuz set to reopen on Friday

June 16, 2026 (MLN): Oil prices slid to their lowest level in three months on Tuesday, with markets reacting to progress toward a US-Iran agreement that could reopen the Strait of Hormuz to international shipping.

Currently, Brent crude futures is down by $4.14, or 4.98%, to $79.03 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $4.74, or 5.87%, to $76.01 per barrel by [9:22 pm] PST.

President Trump, attending the G7 leaders summit in Évian-les-Bains, France, confirmed that the peace framework has been signed, stating that the Strait of Hormuz will "completely reopen" on Friday, free of Iranian tolls, with a formal signing ceremony scheduled in Geneva on the same day , according to CNBC.

Washington and Tehran had reached a provisional agreement on Sunday, extending the existing ceasefire by 60 days and paving the way for the strategic waterway's reopening.

Iran's Supreme National Security Council described the deal as the outcome of "a difficult and intensive period of negotiations lasting several months."

Full details of the memorandum of understanding are yet to be made public, with the two sides giving conflicting accounts of the agreement's contents.

The Strait of Hormuz through which roughly one-fifth of the world's oil and liquefied natural gas normally passes  had remained disrupted for over three months, roiling global energy markets.

The prospect of its reopening has now driven the sharpest single-day oil price decline in recent weeks

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