Oil Prices Plunge 5% as Trump Announces Landmark Peace Deal with Iran

U.S. President Donald Trump announced a completed peace deal with Iran to halt the war, triggering an immediate plunge in crude oil prices by 4% to 5%. Under the landmark agreement, the Strait of Hormuz will reopen to international shipping without a toll system, and the United States will terminate its naval blockade of Iran. This resolution of long-standing geopolitical conflict effectively removed the significant risk premium that had been priced into energy markets.

The sharp decline comes as the market re-evaluates global supply dynamics, given that the Strait of Hormuz facilitates the transit of nearly 20% of global oil consumption according to EIA data. This sell-off overshadows recent domestic data, such as the API report on June 9, 2026, which showed a substantial crude stock draw of 9.119 million barrels. Market experts note that the potential for a full return of Iranian barrels to the global market represents a structural shift in the supply-demand balance.

Traders should now watch for new support levels as the market stabilizes following the announcement. Key upcoming catalysts include China's Inflation Rate data on June 10, 2026, which will provide insight into demand from the world's largest oil importer. Additionally, the market will be looking for official statements from OPEC+ members regarding how this peace deal might influence their current production strategy and long-term output targets.