Crude oil prices dropped sharply after the United States and Iran announced a framework agreement to end the war. US President Donald Trump said the agreement would help reopen the important Strait of Hormuz shipping route. After the news, Brent crude oil prices fell 4.7% to $83.24 per barrel. Stock markets around the world reacted positively, with share prices rising in Asia and Europe.Crude oil prices fell after the US-Iran peace deal. (Pexel/Representative image) (Pexel)Pakistan, which helped bring the US and Iran together for talks, said the official signing ceremony is expected to take place on June 19 in Switzerland. Iran's Deputy Foreign Minister, Kazem Gharibabadi, also confirmed on state television that the agreement with the US had been finalized. Trump also celebrated the development on social media and posted, "let the oil flow!"Strait of Hormuz reopensThe Strait of Hormuz has been largely closed since the US and Israel launched airstrikes on Iran on February 28. During the conflict, Iran threatened ships using the strait, raising fears about global energy supplies. Around 20% of the world's oil and liquefied natural gas (LNG) normally passes through the Strait of Hormuz, as noted by BBC. Because of the war, global oil prices moved up and down sharply for several months.Also read: Social Security benefit cut: Why trustees projection on 2032 insolvency risk has beneficiaries concernedBrent crude price jumpBefore the conflict started, Brent crude traded at around $70 per barrel. During the war, Brent crude prices surged to nearly $120 per barrel. Investors welcomed the peace framework, causing major gains in Asian stock markets. Japan's Nikkei 225 index jumped 5% after the announcement. South Korea's Kospi index rose 5.2%, according to BBC.Asian countries were hit hard by high energy prices because many depend on Middle Eastern oil and gas. European markets also gained after the deal news. Germany's DAX rose about 1.7%. France's CAC 40 increased around 1.7%. London's FTSE 100 climbed 0.6%, as per BBC.Oil supply challenges remainOil prices have already fallen about $25 from their war-time peak. However, analysts caution that the market may still face supply-related challenges even after the peace agreement. Futures contracts suggest oil may not fall below $70 per barrel until late 2031. Analysts say the market understands that major supply challenges still remain, as per the report by CNN.Overall, the peace framework has pushed crude oil prices lower for now, but analysts say it may take time for global energy markets to fully stabilize.