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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Oil prices fell to their lowest levels since early March following President Trump's announcement of a preliminary agreement between the United States and Iran. According to reports, the two nations signed a 60-day peace framework aimed at ending hostilities and de-escalating regional tensions. This sudden development has significantly reduced the geopolitical risk premium previously priced into crude markets, primarily through the planned reopening of the Strait of Hormuz.
The sell-off occurred despite supportive inventory data from the American Petroleum Institute (API), which reported a crude stock draw of 9.119 million barrels for the week ending June 9, significantly higher than the forecast of 3.4 million barrels per market data. However, the prospect of Iranian supply returning to global markets and the removal of threats to major oil transit chokepoints outweighed the impact of declining domestic inventories.
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Sign InTraders are now focused on key support levels as prices test lows not seen since the first quarter. Market participants will be closely watching the U.S. Consumer Price Index (CPI) release on June 10, 2026, to gauge broader economic demand. Additionally, the actual implementation of the 60-day framework and the status of maritime security in the Strait of Hormuz remain the primary catalysts for price action in the coming weeks.