Details of a preliminary U.S.-Iran peace agreement emerged on June 17. The deal mandates the immediate reopening of the Strait of Hormuz. Iran will resume oil exports without restrictions following a formal signing this Friday.
Oil prices stabilized below $80 per barrel on Wednesday. This follows a sharp sell-off as markets price in the return of Iranian supply. The agreement significantly reduces geopolitical risk premiums that previously kept prices elevated.
The U.S. Treasury will issue waivers for Iranian crude and petrochemical exports. This action ends the naval blockade of Iranian ports.
Physical reopening of the shipping channel could take several weeks. Crews must complete mine clearance and ship repositioning before traffic normalizes. The deal marks a major shift in global crude supply dynamics.