By Editorial Dept - Jun 19, 2026, 6:30 AM CDT
August WTI crude oil futures posted a steep decline during the week ending June 19 as traders aggressively removed geopolitical risk premium from the market following a breakthrough agreement between the United States and Iran. The contract traded between a high of $81.00 and a low of $72.83 before settling at $75.22, down $7.22, or 8.73%, from the previous week's close.The selloff extended throughout most of the week as traders shifted their focus from fears of supply disruption in the Persian Gulf to the prospect of additional Iranian barrels returning to the global market. While underlying inventory data remained supportive, the market largely viewed the diplomatic developments as a major bearish catalyst capable of easing supply concerns that had driven prices sharply higher earlier this year.Iran Agreement Removes Geopolitical Risk PremiumThe dominant story for crude oil traders was the rapid progress toward a U.S.-Iran agreement designed to end months of conflict and restore commercial oil flows through the Strait of Hormuz. Reports throughout the week indicated that the agreement would reopen the vital shipping corridor while allowing Iran to resume oil exports under a sanctions waiver framework. Market participants quickly focused on the potential return of Iranian crude exports, significantly improving global supply expectations.The agreement culminated with the White House sending the text of the interim accord to Congress on June 18.…
