According to Reuters, Brent crude fell by more than 4% after the announcement, while US West Texas Intermediate also dropped as traders removed part of the geopolitical risk premium built into prices during the conflict.
Reuters reported that the preliminary agreement includes an immediate halt to hostilities and the reopening of the Strait of Hormuz, with wider negotiations on Iran’s nuclear programme and sanctions to continue during a 60-day ceasefire period.
The Strait of Hormuz is a critical chokepoint for global energy markets. The US Energy Information Administration says an estimated 23.2 million barrels per day of oil flowed through the strait in the first half of 2025, making it the largest oil transit chokepoint in the world by volume.
Shipping has not yet returned to normal: one LNG tanker had passed through the strait after the announcement, but shipping companies remained cautious because of safety concerns, including the possible presence of naval mines and the need for clear assurances on safe navigation.
The same report said tanker movements in the Gulf remained well below levels seen before the crisis. Analysts cited by Reuters said normal shipping could resume within days if safe passage is confirmed, but operators are likely to remain sensitive to any renewed security risk.
The reopening of Hormuz could also reduce pressure on freight and insurance costs in the tanker market. During the disruption, war-risk premiums and security concerns added to the cost of moving oil and LNG through the region, with some shipowners delaying or rerouting vessels until conditions became clearer.
For hauliers, the immediate issue is whether lower crude prices feed through into diesel. The European Commission’s Weekly Oil Bulletin shows that EU fuel prices were still elevated in early June, while IRU reported on 5 June that the EU average diesel price stood at €1.863 per litre. That was down 1.9% week on week, but still 14% above the level recorded before the start of the war.
A sustained easing in crude prices would therefore be welcome for operators facing high fuel bills, but the effect will depend on refining margins, taxes, national price measures and how quickly energy flows through the Gulf return to normal.
