Oil Slumps and Markets Surge After Trump Announces Iran Deal

President Donald Trump’s dramatic announcement of a peace agreement with Iran and the reopening of the Strait of Hormuz jolted global markets and appeared to end months of energy disruption. Brent crude fell more than 4% within hours, dropping below $84 a barrel, its lowest level since the war began in March.

Trump said he had ordered the end of the U.S. blockade on Iranian ports and that the Strait of Hormuz, through which about one fifth of global oil supply passes, would reopen to traffic on Friday. His message, posted on Truth Social, read, “World’s shipping, start your engines. Let the oil flow!”

Asian stock markets jumped sharply as investors welcomed the easing of supply fears. Market analysts said a rise in risk appetite was outweighing concern over technical details that have not yet been disclosed. The announcement came after a period in which the market had been squeezed by uncertainty and the loss of about 20 million barrels of oil per day.

Even so, experts warned that a full recovery could take time. Rystad Energy estimates that restoring 85% of the lost oil volume will take until October, and says difficult negotiations over Iran’s nuclear program in the next 60 days could limit further price declines. For now, the global economy is reacting as if a major energy crisis may be ending.