As of 02:17 ET (06:17 GMT) on Monday, Brent Oil Futures expiring in August were down 4.1% at $83.79 per barrel, while WTI crude futures fell 4.6% to $80.99 per barrel. These declines extended last week\u2019s losses and pushed both benchmarks to their weakest levels in more than three months.<\/p>\n
The move followed a Sunday announcement by U.S. President Donald Trump and Iranian officials of a framework ceasefire agreement. The arrangement is intended to halt hostilities and allow maritime traffic to resume through the Strait of Hormuz, a key chokepoint for global energy flows.<\/p>\n
In a social media post, Trump stated that he authorized the \u201ctoll free opening of the Strait of Hormuz\u201d and the \u201cimmediate removal of the United States Naval blockade,\u201d adding, \u201cShips of the World, start your engines. Let the oil flow!\u201d The agreement is expected to be formally signed by Friday, with Iran indicating that a broader accord would be negotiated during a 60-day ceasefire.<\/p>\n
The Strait of Hormuz handles roughly one fifth of global oil and fuel consumption and has been central to supply concerns since the conflict began earlier this year. Shipping disruptions, higher insurance costs, and fears of prolonged shortages had previously helped push Brent crude above $120 per barrel at the peak of the crisis.<\/p>\n
Iran\u2019s Mehr news agency reported that the draft agreement calls for reopening the waterway within 30 days under Iranian arrangements. Draft provisions reportedly include sanctions relief, limits on Iran\u2019s nuclear activities, and steps to normalize Iranian oil exports. The prospect of additional Iranian barrels reaching global markets has added to downward pressure on prices.<\/p>\n
Analysts cited in the report cautioned, however, that risks persist. The ceasefire framework still requires formal implementation, and tanker traffic through Hormuz may not immediately return to pre-war levels even if the strait fully reopens.<\/p>\n
In parallel, investors are monitoring a busy week for central banks, including the U.S. Federal Reserve\u2019s policy meeting on June 16\u201317. The Fed is expected to keep interest rates steady while markets watch for updated economic projections.<\/p>\n
Why did oil prices fall more than 4% on Monday?<\/strong> What are the latest Brent and WTI price levels mentioned?<\/strong> Why is the Strait of Hormuz important for oil markets?<\/strong> What are some elements reportedly included in the draft U.S.\u2013Iran agreement?<\/strong>
Oil prices declined after the United States and Iran announced an interim framework agreement to halt hostilities and reopen the Strait of Hormuz, easing concerns about supply disruptions and raising expectations of improved oil availability.<\/p>\n
As of 02:17 ET (06:17 GMT), August Brent futures traded at $83.79 per barrel, down 4.1%, while WTI crude futures were at $80.99 per barrel, down 4.6%.<\/p>\n
The Strait of Hormuz handles roughly one fifth of global oil and fuel consumption, making it a critical route for maritime energy shipments and a key factor in global supply risk.<\/p>\n
According to Iran\u2019s Mehr news agency, draft details include reopening the Strait of Hormuz within 30 days under Iranian arrangements, sanctions relief, limits on Iran\u2019s nuclear activities, and measures to normalize Iranian oil exports.<\/p>\n