Brent crude has slid below $80 per barrel for the first time since early March, driven by growing confidence that a US-Iran ceasefire extension will reopen the Strait of Hormuz to normal shipping traffic.
The US and Iran have agreed to extend their ceasefire for 60 days, building on an initial pause brokered by Pakistan. A formal signing is expected around June 19 in Switzerland, with US President Donald Trump and Iranian Deputy Foreign Minister Kazem Gharibabadi among the key figures. The strait is the world’s most important oil chokepoint, with a fifth of the global petroleum supply passing through it daily. US WTI crude has also tumbled below $80.
A sustained decline in crude prices eases inflationary pressure, giving central banks more room to hold rates steady or cut. Lower energy costs also improve margins for energy-intensive operations like Bitcoin mining.
Geopolitical risk remains. If the agreement collapses, oil prices could snap back violently. Investors should pay close attention to the June 19 signing date in Switzerland. If talks stall, the reversal could be sharp.