Oil prices plunged after US President Donald Trump signed a landmark Hormuz deal with Iran to reopen the Strait and end months of conflict, easing global energy fears on 18 June 2026
US President Donald Trump and his Iranian counterpart signed a memorandum of understanding to end their three-month war and reopen the Strait of Hormuz in Versailles on Wednesday 17 June 2026, triggering a sharp fall in global oil prices.
Also read: NUPRC projects strong rise to 1.9m barrels daily
The agreement, mediated by Pakistani officials, marks a significant de-escalation after fighting that began on 28 February and severely disrupted one of the world’s most critical energy chokepoints. Through the strait normally flows around one-fifth of global oil supplies.
Trump told reporters simply: “Just signed it.” Iranian Foreign Ministry spokesman Esmaeil Baqaei confirmed the document had been finalised with the signatures of both presidents.
Pakistan Prime Minister Shehbaz Sharif, whose government helped broker the deal, announced on X: “As a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade.”
Under the agreement, Washington will waive oil sanctions and help release a $300 billion reconstruction fund, while Tehran commits to diluting its enriched uranium stockpile as longer-term negotiations continue.
The news brought immediate relief to energy markets that had been on edge for weeks.
Crude prices extended their recent decline on Thursday. West Texas Intermediate fell 1.7 percent to $75.47 a barrel, while Brent North Sea Crude dropped 1.4 percent to $78.42 a barrel.
Both benchmarks have now lost more than 15 percent since last week when rumours of an agreement first emerged.
Analyst Stephen Innes at SPI Asset Management noted: “A signed MOU and a faster path toward reopening the Strait of Hormuz should pull some of the panic premium out of crude.”
The positive momentum in oil was partly offset by signals from the US Federal Reserve under its new chairman Kevin Warsh, who after his first policy meeting indicated that interest rates could rise before the end of the year amid persistently high inflation.
This Trump Hormuz deal comes after months of tension that had pushed energy costs higher and contributed to renewed inflationary pressures worldwide.
Also read: NUPRC projects strong rise to 1.9m barrels daily
While markets welcomed the breakthrough, analysts caution that full implementation and a durable peace will depend on careful follow-through in the coming weeks.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
