President Donald Trump announced at the G7 summit on June 15 that the US and Iran have reached a framework agreement to officially end their war, with the Strait of Hormuz set to reopen by June 19. The announcement sent immediate shockwaves through global markets, with Bitcoin surging past $66,000 and WTI crude dropping 5%.
The Strait of Hormuz is the narrow waterway between Iran and Oman through which roughly a fifth of the world’s oil supply passes daily. Iran’s blockade of the strait during the conflict had been choking global energy markets for months.
The deal and what it means for energy markets
The framework agreement caps months of escalating military tensions between Washington and Tehran that began in early 2026. Active ceasefire negotiations had been underway since late May, with the US implementing operational pauses specifically designed to facilitate the strait’s reopening.
The immediate market reaction tells the story. WTI crude fell 5% on the news, reflecting the expectation that oil supply chains through the Persian Gulf will normalize. For months, the Iranian blockade had injected a massive risk premium into energy prices, squeezing consumers and businesses worldwide.
