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The price of Brent crude oil for August delivery fell sharply on Monday by 4.67%, to $83.27, following the announcement of the peace agreement reached between the United States and Iran that is expected to allow the reopening of the strategically important Strait of Hormuz.
At 7:00 AM this Monday, Brent—Europe's benchmark crude—hit its lowest level since early March 2026, just days after the onset of the armed conflict in the Middle East, according to a report by EFE.
The fall occurred after President Donald Trump announced on his social media platform Truth Social on Sunday that he had reached an agreement with Tehran to reopen the Strait of Hormuz, the closure of which has caused serious disruptions in the global energy supply.
"The agreement with the Islamic Republic of Iran is now complete. Congratulations to everyone! I hereby fully authorize the toll-free opening of the Strait of Hormuz and, simultaneously, I authorize the immediate lifting of the United States naval blockade. Ships of the world, start your engines! Let the oil flow!", wrote Trump, without providing further details of the pact.
In exchange for the reopening, Washington will lift the maritime blockade imposed on the entry and exit of vessels at Iranian ports.
The conflict that now seems to be coming to an end began on February 28, 2026 with the so-called "Epic Fury Operation," a joint military offensive by the United States and Israel against Iranian nuclear and military facilities.
Iran responded on March 4 by closing the Strait of Hormuz, through which approximately 20% of the world's oil and between 20% and 25% of global liquefied natural gas transit, causing Brent crude to surge above $100 per barrel.
On April 13, the U.S. imposed a naval blockade on Iranian ports which caused crude oil prices to rise to $102, and in May, Brent crude surpassed $120 per barrel, with projections from Goldman Sachs and Citi indicating prices could reach $140-150 if the blockade continued.
Pakistan, which acted as a mediator between Washington and Tehran, was the first to publicly announce the agreement through its Prime Minister Shehbaz Sharif, who confirmed an immediate and permanent cessation of military operations.
The pact that is now being announced came after several weeks of exchanges of drafts and contradictory statements: just last Friday, Iran was still dampening Pakistan's optimism about an imminent signing.
The announcement was made on Sunday, the day when Trump turned 80 years old, a date that the president had insisted on aligning with the agreement.
Among the elements of the pact is the unblocking of approximately 12 billion dollars in frozen Iranian assets, although specific details, particularly regarding the Iranian nuclear program, have yet to be made public.
Both parties will sign a memorandum of understanding —referred to as the "Islamabad Agreement"— to end all hostilities next Friday, June 19, in Switzerland, as confirmed by Iranian Deputy Foreign Minister Ali Gharaibabadi.
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