Crude oil prices plunged Monday after President Donald Trump announced that the United States and Iran had reached an agreement to reopen the Strait of Hormuz, easing fears over a prolonged global energy crisis.
Brent crude fell 4.8% to $83.17 per barrel, while West Texas Intermediate crude dropped 5.2% to $80.46 a barrel. U.S. oil briefly dipped below the $80 mark during early trading for the first time since March.
The sharp decline came after months of volatility triggered by the Middle East conflict, which had previously driven oil prices as high as $126 per barrel and sent gasoline prices soaring across the United States.
In a post on TRUTH Social Sunday night, Trump declared the agreement finalized.
“The Deal with the Islamic Republic of Iran is now complete,” the president wrote.
“Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling roughly 20% of global oil shipments.
Officials said the strait is expected to formally reopen Friday when the agreement is signed in Switzerland.
Wall Street responded enthusiastically to the developments, with investors betting the deal could bring an end to one of the worst energy supply disruptions in modern history.
The Dow Jones Industrial Average jumped 517 points, or roughly 1%, by mid-morning Monday. The S&P 500 climbed 1.5%, while the tech-heavy Nasdaq Composite surged 2.4%.
The market rally comes after weeks of economic anxiety tied to rising fuel prices and renewed inflation concerns fueled by the conflict.
While crude prices remain elevated compared to pre-war levels, Monday’s selloff pushed both major oil benchmarks to their lowest levels in roughly three months.
More over at The New York Post:
Oil prices sink to lowest levels in months after Trump touts Iran deal to reopen Strait of Hormuz https://t.co/gmeEvanx1h pic.twitter.com/90bdME1UDF
— New York Post (@nypost) June 15, 2026
