Oil steadies above $82 on doubts of Hormuz recovery timeline

June 16, 2026 (MLN): Oil prices remained steady on Tuesday as markets tempered Monday's sharp sell-off, with traders questioning the durability of a preliminary U.S.-Iran agreement and growing skeptical that crude flows through the Strait of Hormuz would normalize anytime soon.

Currently, Brent crude futures is down by $0.63, or 0.52%, to $82.65 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.24, or 0.3%, to $80.51 per barrel by [10:40 am] PST.

The partial recovery came a day after both benchmarks shed nearly 5%  their steepest single-session decline since early March following U.S. President Donald Trump's announcement that Washington and Tehran had signed a memorandum of understanding to end hostilities, according to CNBC.

The conflict had shuttered the Strait of Hormuz, a chokepoint accounting for roughly one-fifth of global oil supply, and taken an estimated 14 million barrels per day of output offline.

Markets, however, quickly grew cautious.

Full terms of the memorandum have yet to be made public, and no permanent ceasefire framework has been established.

Preliminary indications suggest the deal would reopen the strait and extend a 60-day pause in fighting to allow negotiators time to address thornier issues, including the future of Iran's nuclear programme.

Iranian President Masoud Pezeshkian acknowledged the agreement as "an important step" toward ending the conflict but cautioned that a lasting truce "has yet to take shape."

Uncertainty also lingers over how swiftly the curtailed supply can re-enter the market, even under the current arrangement a key concern keeping a floor under prices despite the broader diplomatic optimism.

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