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Crude Oil · Geopolitics · Hormuz Strait · Iran Deal
Crude oil prices plummeted on Friday, June 12, 2026, extending yesterday's sharp losses, after U.S. President Donald Trump claimed a U.S.-Iran interim peace agreement will be signed this weekend and affirmed the Strait of Hormuz will reopen, causing WTI Crude Oil for July delivery to drop $2.86, or 3.26%, to $84.85 per barrel.
This announcement by President Trump, reported by RTTNews, significantly reduced concerns about supply disruptions in the global oil market. The prospect of a diplomatic resolution between the U.S. and Iran, coupled with the assurance of unimpeded passage through the critical Strait of Hormuz, directly eroded the geopolitical risk premium previously priced into crude oil.
This development signals a potential increase in global oil supply and a reduction in regional instability, impacting energy market dynamics. Investors are now assessing the broader implications of this agreement on global trade, energy security, and the future trajectory of oil prices.
