Crude oil just had its worst session in months. West Texas Intermediate dropped roughly 4% after the US and Iran agreed to a framework that would reopen the Strait of Hormuz for commercial shipping.
About a fifth of the world’s daily oil supply passes through that narrow waterway between Iran and Oman.
What the deal actually looks like
The agreement centers on reopening the Strait of Hormuz within 30 days of a finalized deal. Alongside the shipping lane restoration, the framework includes unfreezing certain Iranian assets and easing specific oil sanctions.
WTI crude settled in the $81-85 per barrel range, a sharp decline from earlier in 2026 when escalating tensions and tightened sanctions pushed prices above $100 per barrel. Brent crude followed a similar trajectory, declining to approximately $88 per barrel.
