Oil prices fall 3.9% after US-Iran deal
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Global oil prices dropped 3.9% to $83.91 per barrel after US President Donald Trump announced a deal with Iran and ordered the lifting of the US naval blockade. The agreement, confirmed by Trump, Pakistani Prime Minister Shehbaz Sharif, and Iranian Deputy Foreign Minister Kazem Gharibabadi, was reached on Sunday, June 14. A formal signing ceremony is scheduled for Friday, June 19, in Switzerland.
The Price Drop
Brent crude futures for June delivery fell 3.92% to $83.91 per barrel as of 03:05 Astana time, while WTI crude futures dropped 4.55% to $81.02 per barrel. The decline followed Trump's announcement of a US-Iran deal and his order to lift the naval blockade. The market reacted swiftly to the prospect of increased Iranian oil exports.
The Agreement
The peace agreement was finalized on Sunday, June 14, with confirmation from Trump, Pakistani Prime Minister Shehbaz Sharif, and Iranian Deputy Foreign Minister Kazem Gharibabadi. The deal includes the lifting of the US naval blockade, a key Iranian demand. A formal signing ceremony is set for June 19 in Switzerland.
China's Strategic Reserves Role
China's strategic petroleum reserves absorbed the supply shock from the Strait of Hormuz closure, preventing a sustained price spike. The reserves, built over years, were released to stabilize markets, countering forecasts of $150 oil.
What's Next
The official signing ceremony is scheduled for Friday, June 19, in Switzerland. It remains unclear how quickly Iranian oil exports will return to global markets and whether OPEC+ will adjust production quotas in response.
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Oil prices fall 3.9% after US-Iran deal
