Texas oil prices drop to $80.75 after US-Iran peace deal

Texas Intermediate (WTI) crude oil prices experienced a significant drop, closing at $80.75 per barrel, a 4.87% decrease. This decline occurred immediately after the United States and Iran announced a peace agreement aimed at ending their conflict and reopening the vital Strait of Hormuz.

The market trended downward from the opening bell as Washington and Tehran confirmed they would sign a memorandum of understanding on June 19 in Switzerland to cease all hostilities. While the official signing is scheduled for Friday, U.S. President Donald Trump and Vice President JD Vance have already electronically signed the document. On the Iranian side, Parliament Speaker Mohamad Baqer Qalibaf provided his signature.

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the agreement will allow the reopening of Hormuz.

Although the full text of the agreement is expected within 24 to 48 hours, President Trump stated that the deal would facilitate the reopening of the Strait of Hormuz. Iran's previous blockade of this strategic waterway, in response to U.S. and Israeli attacks that initiated the conflict, had been a primary driver of soaring oil prices. Trump also indicated that the U.S. would lift sanctions on Iranian ports, a move taken in retaliation for Tehran's refusal to open the passage. He further noted that the strait is already partially open and anticipates full reopening by Friday, pending demining operations.

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the strait is already partially open and I trust that it will be fully open this Friday when the demining work is finished.