Oil Drops to 3-Month Low as US-Iran Deal Signals Supply Return Maritime Activity Reports, Inc. June 18, 2026 © Miha Creative / Adobe Stock Oil prices fell by more than $2 per barrel on Thursday after the U.S. and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran's oil, boosting the oil supply outlook. Brent crude futures LCOc1 were down $2.14, or 2.69%, at $77.41 a barrel as of 0616 GMT, and U.S. West Texas Intermediate CLc1 fell $2.36, or 3.07%, to $74.43 a barrel. Brent sank to its lowest since March 2, which was the first day of trading after the U.S. and Israel began attacking Iran, while WTI was at its lowest since March 4. The benchmarks resumed their decline, reversing a jolt higher on Wednesday that followed comments from U.S. President Donald Trump saying he could resume his bombing campaign if Iran's leaders "don't behave". "The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following the recent U.S.-Iran memorandum of understanding," IG market analyst Tony Sycamore said in a note. The 14-point memorandum begins a 60-day negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz, a key oil and gas shipping lane. The deal calls for traffic through the strait to be restored to its full capacity within 30 days. The preliminary accord defers many of the more difficult issues such as Iran's nuclear program, and also requires the U.S. and its partners to come up with a $300 billion plan to finance Iran's recovery. Analysts are cautious on how much further oil prices might decline in the near term, as supply could remain tight even after the Strait of Hormuz reopens. "The volume of crude returning to the market after Hormuz reopens could be limited as some cargoes already exited through workaround arrangements, while shipowners may remain reluctant to send tankers back into the regi