The Ateela 2 Oil Tanker sails at sea on April 28, 2026 in Qeshm Island, Iran in the Strait of Hormuz.
Asghar Besharati | Getty Images
Oil prices fell after President Donald Trump said the US had terminated a deal with Iran to reopen the Strait of Hormuz.
Dirty US Oil futures for July delivery fell below $80 a barrel for the first time since March in early trading in Europe before paring losses. Prices were down 5.5% at $80.15 a barrel at 5:40 am ET. Brent Futures, the international benchmark, for August delivery traded up about 5.1% to $82.87.
Energy stocks came under pressure in early trade in Europe, with the Stoxx 600 Energy Sector down 2.3% at the open. In London, the FTSE 100 Energy Sector fell 4%, with BP down 3.8% again A shell decreased by 3.7%.
“The deal with the Islamic Republic of Iran is now over,” Trump said in a Truth Social post. Hormuz will open without a toll system and the US will end its military blockade of Iran, the president said.
“Ships of the Earth, start your engines,” Trump said. Let the oil flow!”
Trump, in a recent post, said the issue would be resolved on Friday, the day of the official signing of the peace treaty in Switzerland.
“With the opening of the Strait when the Agreement was signed on Friday, with the aim of removing the mine, oil will flow from both ends and to the Region, and to the world!” he said.
US crude prices this year
About 20% of the world’s oil consumption passed through the Hormuz strait before the tankers were sunk in early March due to an Iranian attack. The Hormuz crisis caused the largest oil supply shock in history.
Pakistan’s Prime Minister Shehbaz Sharif said on Sunday that the US and Iran had announced a permanent cessation of military operations on all sides, including Lebanon. Pakistan’s prime minister acted as a mediator between the US and Iran.
“We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a political solution,” Sharif said. Mediators will hold meetings this week to lay the groundwork for technical talks and a formal signing ceremony, he said.
The CEO of oil tanker company Frontline told CNBC last week that he expects shipping through Hormuz to accelerate if the US and Iran reach a credible deal.
“I’m actually very optimistic the minute the situation changes and the US and Iran get some kind of agreement, at least not to attack the ships, that those shipping lines will resume immediately,” said Frontline CEO Lars Barstad.
Futures are combined with The Dow Jones Industrial Average added 440 points, or 0.9%. S&P 500 futures changed to +1.14% for the week Nasdaq 100 futures changed to -1.79% for the week.
Asia-Pacific markets also rose, with South Korea’s Kospi leading the region, up 5.56%; the smaller Kosdaq added 0.74%. Japan’s Nikkei 225 added 4.90% while the Topix rose 3.32%. The Hong Kong Hang Seng Index was up 0.45%, while the mainland’s CSI 300 rose 1.47%.
