President Donald Trump confirmed an initial peace agreement between the United States and Iran on June 15, 2026. The deal includes plans to reopen the Strait of Hormuz. This vital channel handles approximately 20% of global oil consumption.
Energy markets sold off sharply as geopolitical risk premiums evaporated. Brent crude prices fell over 5% to a low of $82.94 per barrel. This marks the lowest level for Brent since March. West Texas Intermediate crude also dropped more than 5% to trade below $81 per barrel. The move represents one of the steepest single-day declines in recent months.
Broader equity markets rallied on expectations of cooling inflation. However, Exxon Mobil and Chevron shares declined in premarket trading. Energy ETFs including VDE and XLE faced pressure from the sudden commodity price drop. Lower oil prices signal potential near-term hits to corporate revenues and profit margins.