Oil Prices Sink After US-Iran Agreement to End War and Reopen Strait of Hormuz

Global oil prices fell about 5% after news of a US-Iran agreement to end the war and reopen the Strait of Hormuz. According to data cited by Walla, Brent crude was trading near $82 a barrel and US WTI crude near $79, their lowest levels since the fighting began in late February and early March.

The currency market also reacted, with the dollar weakening to about 2.88 shekels after its official rate at the end of the week was 2.97. The euro also slipped, trading around 3.34 shekels, compared with 3.43 shekels on Friday.

US President Donald Trump announced on Truth Social that, “the deal with Iran is complete.” He said the Strait of Hormuz will reopen without a tariff mechanism and that the United States will end the naval blockade it imposed on Iran.

The deal follows a long stretch of failed efforts to secure a ceasefire. The report said a similar understanding to reopen the strait was reached in April but collapsed within hours after Iran said the United States and Israel had violated its terms. Even with the sharp drop in oil prices, experts warned a return to prewar levels is unlikely to happen quickly. Markets are expecting the release of about 100 million barrels of oil trapped on ships near the strait, but full normalization of supply may still take months.