Oil prices fell after U.S. President Donald Trump announced an agreement with Iran and the reopening of the Strait of Hormuz, CNN reports.
According to the television network, oil prices dropped as Donald Trump announced the deal with Iran and the end of the U.S. naval blockade against the country. Brent crude prices fell by 3.9% to around $84 per barrel, while U.S. crude (WTI) decreased by 4.8% to approximately $81 per barrel. If oil remains at this level, it will mark the lowest price since March 4, 2026.
— On Friday, oil prices fell below $90 per barrel for the first time since the first week of the war. Nevertheless, prices have not yet reached the levels seen before the U.S. and Israeli attacks on Iran began, which were below $70, — the publication noted.
At the same time, experts pointed out that significant work remains to be done in the oil market to return oil flows to normal. This requires stabilizing the situation in the Strait of Hormuz, ensuring unhindered navigation for ships entering and leaving the strait, restoring Middle Eastern oil production, replenishing emergency oil reserves, and repairing damaged energy facilities.
Oil analysts generally believe that oil prices will remain high for some time. Although prices may initially fall, they are expected to recover as demand grows again, particularly after emergency reserves are replenished.
Experts also noted that Middle Eastern oil wells were largely shut down during the war, and restarting production could take several weeks. Analysts also warned that the wells might not be able to reach their pre-war production levels.
As a reminder, U.S. President Donald Trump announced that the signing of an agreement to end hostilities between Washington and Tehran is planned for Sunday. According to Trump, following the signing of the document, the Strait of Hormuz will be opened to all parties.
Earlier, Iranian Foreign Minister Abbas Araghchi stated that the agreement with the U.S. to end the military conflict is nearing completion and includes the reopening of the Strait of Hormuz. He also reported that negotiations regarding Iran’s nuclear program would begin at a later date. Additionally, it was reported that the agreement between the U.S. and Iran could be finalized within 24 hours.
