Oil tanker "SAINT JAMES" docking at a petroleum terminal.
Oil prices experienced a significant drop on Monday, reaching their lowest levels since early March. This decline follows President Donald Trump’s announcement of a preliminary agreement between the U.S. and Iran, aimed at ending a conflict that has disrupted the global energy market.
West Texas Intermediate (WTI) crude oil saw a decline of over 5% during Monday’s trading, falling just above $80 a barrel. Despite this drop, prices for the U.S. oil benchmark remain notably higher than pre-conflict levels, having traded between $60 and $70 a barrel in the month prior to the hostilities.
Brent crude, the international benchmark, also fell by over 3.6% on Monday, trading below $80 a barrel for the first time since early March.
The decrease in oil prices was triggered by President Trump’s statement that he had signed a memorandum of understanding with Iran. This agreement intends to resolve the conflict, which has significantly hampered the flow of oil through the Strait of Hormuz, a critical chokepoint for global tanker traffic. Reduced traffic in the Strait had previously driven up oil prices and created supply concerns.
“The deal’s all signed. And the Strait is already partially opened,” Trump stated upon his arrival in France for the G7 summit. An official signing ceremony is slated for Friday in Geneva.
When questioned about the public release of the Iran memorandum, Trump indicated it would be soon, likely after Friday, once the Strait of Hormuz is fully reopened and cleared of mines. He described the agreement as a
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