Oil Prices Fall to March Lows After Trump Announces Deal with Iran

Oil prices declined to their lowest levels since early March after US President Donald Trump announced on Sunday that an agreement had been reached with Iran, including the full reopening of the Strait of Hormuz for navigation without any fees.

By 22:03 GMT, Brent crude futures had fallen by $3.51, or 4.02%, to $83.82 per barrel. Meanwhile, US crude dropped 5.04% at the start of the trading week to $80.60 per barrel, and West Texas Intermediate crude declined by $3.93, or 4.63%, to $80.95 per barrel.

Trump declared on his platform "Truth Social": "The US naval blockade on Iran is lifted immediately following the agreement." He added: "To the ships of the world, start your engines. Let the oil flow."

On Sunday evening, Trump announced the conclusion of a peace deal with Iran, the lifting of the naval blockade on Iranian ports, and the reopening of the Strait of Hormuz. He wrote on Truth Social: "The agreement with Iran is now complete.. Congratulations to all!"

He further stated: "Accordingly, I authorize the free and immediate opening of the Strait of Hormuz for navigation, and simultaneously authorize the immediate lifting of the US naval blockade.. To the ships of the world, start your engines.. Let the oil flow!"

In a subsequent post, Trump said, “This great deal will bring peace and security to the entire region.” He added, "Many presidents before me tried and failed to achieve peace with Iran. For the first time, regional leaders have found a president who can help them achieve real peace."

He continued: "With the Strait opening upon signing the agreement on Friday, and for the purpose of mine clearance, oil will flow again in both directions benefiting the region and the world!"

Trump’s confirmation came shortly after Pakistan’s Prime Minister Shehbaz Sharif announced on Sunday evening that a peace agreement had been reached between the United States and Iran. This step is expected to mark a significant shift in the trajectory of regional and international tensions following a prolonged period of political and military escalation between the two sides.

Prime Minister Sharif confirmed that Washington and Tehran agreed to an immediate and permanent ceasefire on all fronts, including arenas related to their regional influence, such as Lebanon, indicating an effort to contain any spillover of the conflict beyond their borders.

Earlier, Trump stated he would electronically sign the agreement with Iran or have his deputy, JD Vance, do so. He emphasized that the US would receive Iranian enriched uranium possibly within the next month or two, according to comments reported by The Wall Street Journal.

JD Vance told Fox News that the deal with Iran means the country will never possess nuclear weapons. He added that if Iran complies with the agreement, the Middle East would become "more attractive for investment." Vance expressed hope that the agreement marks a new era with the Iranians and noted that Iran assured Washington it would not retaliate against Israel’s bombing of southern Beirut.

Vance confirmed his intention to attend the signing ceremony of the agreement with Iran.

Earlier on Sunday, Trump called for all parties in the region to de-escalate tensions to ensure the success of the negotiations, according to a post on Truth Social. He stated, "Israel should not carry out any further attacks anywhere in Lebanon, and no other party, including Hezbollah, should attack Israel.. This could be the start of long-lasting peace, so let’s preserve it."

Trump described the Israeli attack on Beirut that morning as avoidable, especially on a “special day” when the agreement with Iran was imminent. He added, "Israel has the right to defend itself against threats, but the attack it responded to was very limited and insignificant, causing no injuries or deaths, and should not obstruct this important process."

Fox News quoted Trump as saying he would request Iran refrain from retaliating against Israel for its bombing of southern Beirut.

The Wall Street Journal reported that Israeli officials were surprised by Trump’s statements urging Tel Aviv to halt its attacks in Lebanon.

The newspaper also noted that a Qatari delegation traveled to Tehran on Sunday hoping to finalize the agreement between Iran and the United States.