The Strait of Hormuz is open for business again. A US-Iran peace agreement reached on June 14, 2026, effectively ends months of hostilities that had choked one of the world’s most critical energy bottlenecks, and fuel markets are already responding.
Brent crude oil dropped by $3 to $5 per barrel following the announcement, settling around $83.89. West Texas Intermediate crude fell to approximately $80.85.
What the deal means for drivers
During the conflict, US national average gas prices surged above $4.50 per gallon. Analysts now expect gradual reductions at the pump, potentially several cents per day as markets digest the lowered supply risk. Full price normalization may not arrive until sometime in 2027.
The Strait of Hormuz handles roughly 20% of global oil flows. The conflict that began in late February 2026 had progressively restricted transit through the strait, creating a slow-motion energy crisis that pushed crude benchmarks higher and dragged consumer fuel costs along for the ride.
