Brent Slumps on US-Iran Deal and Supply Recovery

2026-06-18 10:09 By Agna Gabriel 1 min. read

Brent crude oil dropped below $78 per barrel on Thursday, the lowest level since early March, as markets reacted to the US and Iran reaching an agreement to end a prolonged conflict that caused the largest supply disruption on record.

Early signs of progress emerged as several vessels began crossing the Strait of Hormuz again after weeks of disruption.

President Donald Trump said an interim agreement had been signed, with plans to quickly reopen the key Persian Gulf shipping route.

A return to normal flows through Hormuz could allow major producers including Saudi Arabia, the UAE and Iraq to restart millions of barrels of halted output.

Oil has already fallen around 38% since reaching a four-month high in April.

Shipping activity has shown signs of recovery, with Saudi oil tankers and vessels carrying LNG and fuel leaving the Gulf region.

However, inventory levels remain tight, with crude stocks at Cushing, the largest US storage hub, falling to around 20 million barrels.



News Stream
Brent Slumps on US-Iran Deal and Supply Recovery
Brent crude oil dropped below $78 per barrel on Thursday, the lowest level since early March, as markets reacted to the US and Iran reaching an agreement to end a prolonged conflict that caused the largest supply disruption on record. Early signs of progress emerged as several vessels began crossing the Strait of Hormuz again after weeks of disruption. President Donald Trump said an interim agreement had been signed, with plans to quickly reopen the key Persian Gulf shipping route. A return to normal flows through Hormuz could allow major producers including Saudi Arabia, the UAE and Iraq to restart millions of barrels of halted output. Oil has already fallen around 38% since reaching a four-month high in April. Shipping activity has shown signs of recovery, with Saudi oil tankers and vessels carrying LNG and fuel leaving the Gulf region. However, inventory levels remain tight, with crude stocks at Cushing, the largest US storage hub, falling to around 20 million barrels.
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