Brent Falls as US-Iran Deal Could Reopen Hormuz

2026-06-12 20:32 By Agna Gabriel 1 min. read

Brent oil fell 3.4% to $87.3 per barrel as expectations increased that the US and Iran could reach an agreement to reopen the Strait of Hormuz, although officials warned a deal was not guaranteed.

Prices declined about 6% this week but remain more than 20% higher since the US and Israel launched attacks on Iran on February 28.

A Trump administration official said there is an 80% chance of a deal being signed soon, with the agreement potentially involving the reopening of Hormuz, removal of the naval blockade, dismantling of Iran’s nuclear program and economic incentives if Tehran complies.

However, conflicting reports emerged after Iranian media published a draft proposal suggesting different terms, including US force withdrawals and reconstruction funding.

President Trump said it did not reflect the agreed terms.

Pakistan’s Prime Minister said a final text had been reached, while Iran’s foreign minister said an understanding was closer than ever but urged caution until finalized.



News Stream
Brent Falls as US-Iran Deal Could Reopen Hormuz
Brent oil fell 3.4% to $87.3 per barrel as expectations increased that the US and Iran could reach an agreement to reopen the Strait of Hormuz, although officials warned a deal was not guaranteed. Prices declined about 6% this week but remain more than 20% higher since the US and Israel launched attacks on Iran on February 28. A Trump administration official said there is an 80% chance of a deal being signed soon, with the agreement potentially involving the reopening of Hormuz, removal of the naval blockade, dismantling of Iran’s nuclear program and economic incentives if Tehran complies. However, conflicting reports emerged after Iranian media published a draft proposal suggesting different terms, including US force withdrawals and reconstruction funding. President Trump said it did not reflect the agreed terms. Pakistan’s Prime Minister said a final text had been reached, while Iran’s foreign minister said an understanding was closer than ever but urged caution until finalized.
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Brent Crude Oil Falls to Over 3-Month Low
Brent crude oil fell more than 4% to below $86.5 per barrel on Friday, the lowest since early March, as hopes grew that the US and Iran could reach a peace agreement and end the conflict that has disrupted energy markets. Iran’s Mehr News Agency reported that a 14-point draft agreement includes the lifting of oil sanctions and a commitment from Tehran to reopen the Strait of Hormuz within 30 days, although the proposal still requires approval from Iranian authorities. President Trump said a deal could be signed as soon as this weekend in Europe. The reported agreement would also involve the release of frozen Iranian funds, the suspension of sanctions, and the withdrawal of US forces from the region. Despite improving sentiment, risks remain as tensions continue in the Strait of Hormuz, with reports of drones targeting commercial vessels. Iran has threatened to keep the waterway closed, though tanker traffic has started to increase in recent weeks.
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Brent dropped toward $88 per barrel on Friday, hitting its lowest level in nearly two months after President Donald Trump said a peace agreement with Iran could be reached as early as this weekend. The remarks came after he delayed planned military strikes and warned that the US could target Iran's oil infrastructure. Iran's semi-official Fars news agency reported that Tehran was likely to accept the deal, although no final text has been approved by either side. Trump said the agreement would reopen shipping through the Strait of Hormuz and include Iranian commitments to forgo developing nuclear weapons. Still, traders remained cautious, as even a breakthrough would face significant obstacles before oil flows fully normalize, including clearing mines from Hormuz, restarting idled production fields, and repairing energy facilities damaged by drone and missile attacks.
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