GMS Week 25 – PEACE SIGNED, RAINS REIGN in Weekly Demolition Reports 20/06/2026 The war is over. The United States and Iran digitally signed an interim peace agreement this week, a US official confirming the memorandum has taken effect, with a formal signing in Switzerland set for Friday and the Strait of Hormuz reopening after more than one hundred days closed. President Trump announced the breakthrough from Air Force One en route to the G7 summit at Evian, authorising the strait to open and the US naval blockade to lift, and telling the world’s shipowners, “Ships of the World, start your engines.” Iran’s Supreme National Security Council confirmed that all military operations, on all fronts, including Lebanon, would cease immediately and permanently. The sub-continent, which spent the entire quarter praying for exactly these ships, must now ask them to keep their engines idling until the monsoon lifts. Brent crude has collapsed to approximately USD 78 per barrel, its lowest since late February and effectively the level at which the war began, erasing the entire premium that carried it to USD 126.41 on April 30. WTI trades near USD 75. The agreement removes sanctions on Iranian oil exports and clears the way for Saudi Arabia, the UAE and Iraq to restart millions of barrels of halted output. The International Energy Agency, which in Week 18 called the Hormuz closure “the largest supply disruption in history,” now warns of a coming glut, projecting global supply to rise eight million barrels per day by 2027 against demand growth of two million. The forecast has travelled further than the oil. Freight has continued to cool as the war premium drains from the dry bulk market. The Baltic Dry Index eased to 2,653 on June 17 from the June 1 peak of 3,222, with daily Capesize earnings falling to USD 35,162 from the USD 49,511 high of late May as the disrupted long-haul trades that inflated Capesize demand begin to normalise. Notably, Supramax and Handysize both firmed throu