On Monday morning, traders watching Brent crude saw the global oil benchmark drop 4.3% to $83.55 a barrel — a figure that would have seemed almost impossibly low just weeks ago, when the same contract was trading near $120 amid the US-Israel military campaign against Iran. US-traded West Texas Intermediate fell even further, shedding 4.

9% to settle at $80.74. The catalyst was a statement from Pakistan's Prime Minister Shehbaz Sharif, who announced that a framework deal had been reached to end the conflict, with a formal signing ceremony scheduled for Friday, 19 June in Lausanne, Switzerland. President Donald Trump added his own endorsement on social media — "let the oil flow!

" — while Iran's Deputy Foreign Minister Kazem Gharibabadi confirmed on state television that an agreement with Washington had been finalised. The Strait of Hormuz, a narrow channel through which roughly 20% of the world's oil and liquefied natural gas normally passes, has been effectively closed since late February, when the United States and Israel launched airstrikes on Iran. Tehran responded by threatening any vessel that attempted to use the waterway, triggering one of the most severe disruptions to global energy supply in decades. Brent crude had been trading at approximately $70 a barrel before hostilities began, meaning the war ultimately drove prices up by around 70% at their peak.

Market analysts, however, are cautioning that Monday's price drop may be premature. Vandana Hari of Singapore-based energy research firm Vanda Insights noted that the deal's lack of published detail is likely to generate sustained uncertainty.