Oil Falls After U.S. And Iran Ceasefire Deal Reopens Strait Of Hormuz, Eases Sanctions

Oil prices fell sharply after the U.S. and Iran reached a ceasefire deal that includes reopening the Strait of Hormuz and easing sanctions, restoring a vital energy trade route.

“A draft memorandum of understanding between the United States and Iran surfaced on June 14, covering oil sanctions waivers, nuclear limits, and the release of $25 billion in frozen Iranian assets, as President Trump and Tehran clashed over the signing timeline”

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SINGAPORE, June 15 (Reuters) reported that Brent crude futures fell $3.51, or 4.02%, to $83.82 by 2203 GMT and U.S. West Texas Intermediate was at $80.95 a barrel, down $3.93, or 4.63%.

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Euronews said Tehran confirmed the "text of the memorandum of understanding" has been agreed and is to be signed in Switzerland on Friday, opening the door to 60-day negotiations "following verification of US commitments," including the lifting of the US blockade.

Euronews also quoted Donald Trump saying, "I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States naval blockade."

A senior Iranian official told Reuters that a final draft memorandum of understanding with the U.S. covers an oil sanctions waiver, a $25 billion asset release, and strict nuclear limits, with a final peace agreement discussed within 60 days if both sides approve the draft.

STL.News said the proposed framework includes a complete pause on Iran’s nuclear expansion, agreeing to neither produce nor acquire nuclear weapons while locking in its current civilian nuclear status quo, and requiring Iran to dilute its existing highly enriched uranium stockpile during the 60-day negotiation phase.

Euronews

TRT World reported that the draft includes that Iran would immediately reopen the Strait of Hormuz to all commercial vessels while the U.S. lifts its naval blockade on Iranian ports, and that the U.S. would waive oil sanctions on Iran for a specified period allowing Tehran to sell oil and receive revenue.

TRT World also said Tehran would agree not to produce or acquire nuclear weapons and maintain the current nuclear status quo until a final deal is reached, including by not enriching uranium or expanding nuclear facilities.

Euronews said Deputy Foreign Minister Kazem Gharibabadi stated that the "official signing ceremony" will take place in Switzerland on Friday 19 June, and that the text "will be released soon" so the public can see both Iran’s achievements and its commitments.

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Global Banking & Finance Review

eciks.org reported that President Trump announced on Saturday that the deal would be signed on Sunday, his 80th birthday, while Iran’s Islamic Revolutionary Guard Corps pushed back against the timeline and Iran’s Foreign Ministry cautioned that the signing could take longer.

Euronews also quoted Iran’s military operational headquarters Khatam al-Anbiya claiming that "the resilient and proud people of Iran ... demonstrated with strength that the humiliated ... enemies have no option but to accept defeat and surrender before a people inspired by God and the soldiers of the Almighty."

Global Banking & Finance Review | Western Alternative said oil prices slipped after U.S. President Donald Trump and Iran's deputy foreign minister said they have reached a deal to halt the war and to resume traffic through the Strait of Hormuz.