Mucahithan Avcioglu
16 June 2026•Update: 16 June 2026
Oil prices fell sharply Tuesday, with Brent crude dropping below $80 per barrel for the first time since early March, as expectations of a US-Iran agreement to reopen the Strait of Hormuz eased supply concerns.
International benchmark Brent crude fell around 4% to $79.8 per barrel as of 1235GMT, while US benchmark West Texas Intermediate (WTI) also declined 4.3% to $77.3, as traders priced in the prospect of recovering crude flows from the Gulf region.
Prices are heading toward their longest losing streak of the year, pressured by expectations that an interim US-Iran agreement could help restore shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
The anticipated deal is expected to be signed in Switzerland on Friday.
Meanwhile, US President Donald Trump told reporters Tuesday on the sidelines of the G7 Summit in France that he would share the peace deal document with Iran with the media “in a couple of days.”
The waterway was going to be open toll free “permanently,” he added.
Market optimism has increased hopes that the reopening of the strait would ease pressure on global supply chains and support the recovery of regional exports, which were disrupted by the effective closure of the waterway.
Despite the sharp fall in prices, uncertainty remains about how the agreement will be implemented, including shipping security, operating conditions and whether the waterway will reopen fully. The disruption in Hormuz has curbed regional exports and contributed to tightening global inventories.
In the US, emergency crude reserves have fallen to their lowest since 1983, highlighting the extent of pressure on available supply after recent drawdowns from the Strategic Petroleum Reserve.
