Oil Slips to 3-Mo Low on U.S.-Iran Peace Deal Announcement


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Oil futures slumped to their lowest since early March Monday 
(6/15) morning after the U.S. and Iran announced they had agreed to an interim 
deal to end the war and reopen the Strait of Hormuz.

   By 07:30am ET, ICE Brent for August delivery was down $4.46 to trade near 
$82.87 bbl, and NYMEX WTI for July delivery fell $4.70 to $80.18 bbl.

   Downstream, NYMEX ULSD futures for July delivery retreated $0.1064 to 
$3.2980 gallon, and front-month NYMEX RBOB futures plummeted $0.1180 to $2.9318 
gallon. 

   The US dollar index softened by 0.22 points to 99.525 against a basket of 
foreign currencies.

   U.S. President Donald Trump on Sunday said that a deal with Iran was "now 
complete" and announced a reopening of the Strait of Hormuz as well as the 
immediate lifting of the U.S. blockade on Iranian maritime trade. The President 
clarified in a second statement that flows through the Strait of Hormuz will 
resume once both parties sign the deal on Friday in Switzerland.

   The memorandum of understanding mediated by Islamabad extends the ceasefire 
for another 60 days to allow for negotiations about yet unresolved issues like 
Iran's nuclear program and the lifting of sanctions.

   Hundreds of laden tankers continued to idle in the Persian Gulf as shippers 
were seeking clarity on a timeline for safe passage through the Strait of 
Hormuz, the blockade of which has cut the world off almost a fifth of petroleum 
liquid supply for now three and a half months. The largest oil supply 
disruption in history caused oil prices to rally and global inventories to 
dwindle from five-year highs to the lowest in a decade.

   Iranian news outlets, meanwhile, reported that the deal granted Iran 30 days 
to reopen the strait. The timing of the restart of flows is crucial given 
rapidly shrinking oil and fuel stockpiles. The International Energy Agency has 
repeatedly warned that inventories could hit a "red zone" by the July-August 
period should traffic not be restored, jeopardizing fuel supply safety and 
raising shortage risks.

   While markets can expect some immediate respite once the shipping disruption 
ends, oil supply will take months to approach pre-war levels. In addition to 
hurdles such as damaged energy infrastructure and a shortage of empty tankers, 
production at many oil fields forced shut by the lack of takeaway capacity will 
be slow to ramp up.




(c) Copyright 2026 DTN, LLC. All rights reserved.