June 15, (THEWILL) — Global oil prices plunged sharply on Monday after the United States and Iran reached a historic peace agreement that effectively ended nearly four months of military confrontation, triggering a major selloff in energy markets and easing fears of a prolonged global supply crisis.
The sharp decline pushed crude oil prices to their lowest levels since March, as investors reacted positively to news that both countries had agreed to halt military operations and reopen the strategically critical Strait of Hormuz, one of the world’s busiest energy transit corridors.
International benchmark Brent crude futures fell by $3.58, representing a 4.10 percent drop, to trade at $83.75 per barrel, while U.S. West Texas Intermediate crude dropped by $4.01 or 4.72 percent, settling at $80.87 per barrel.
THEWILL reports that the market reaction followed a dramatic announcement by United States President Donald Trump, who declared that Washington and Tehran had finalised a peace agreement aimed at ending the conflict that has rattled global markets since late February.
“The Deal with the Islamic Republic of Iran is now complete. Ships of the world, start your engines. Let the oil flow”, Trump wrote Sunday on his Truth Social platform, adding that commercial vessels would immediately regain unrestricted access through the Strait of Hormuz, while the United States would begin removing its naval blockade imposed on Iranian ports during the conflict.
The Strait of Hormuz remains one of the world’s most strategically significant maritime passages, serving as a transit route for nearly 20 percent of global crude oil supply. Since hostilities between the two countries began earlier this year, the waterway has experienced severe disruptions, sending shockwaves through global commodity markets and intensifying fears of widespread economic instability.
Energy analysts said the peace agreement immediately erased what traders had described as a “geopolitical risk premium” that had kept oil prices elevated for months amid fears of prolonged conflict in the Middle East.
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