Oil prices weakened in early Asia trade after Pakistan, acting as mediator to end the US-Iran conflict, announced a deal that President Donald Trump said would reopen the crucial Strait of Hormuz shipping lane. Brent crude futures traded around $84 a barrel in early session, down about 3. 8% from the previous close, while US-traded crude fell about 4.
1% to roughly $81. 40 a barrel. Pakistan’s prime minister, Shehbaz Sharif, said an official signing ceremony would take place on Friday, 19 June in Switzerland, signaling a potential pause in the Middle East oil disruption that has affected global energy markets in recent months.
In a post on social media, Trump said “oil will flow,” framing the development as a turning point for energy supply routes in the region. The Strait of Hormuz had effectively been closed in the wake of the US-Israel airstrikes on Iran on 28 February, with Tehran warning it could target vessels transiting the strait. The flow disruption meant as much as about one fifth of the world’s oil and LNG passes through the corridor, underscoring the vulnerability of energy markets to geopolitical events.
Prices had previously surged from around $70 a barrel before the conflict to a wartime peak near $120, before easing back as markets assessed the durability of any peace framework. Global energy markets have swung on news from the US-Israel-Iran front, with frequent moves as investors weigh the risk of renewed hostilities or broader regional stability. As negotiations continue, traders are watching whether the signing ceremony translates into practical steps to restore shipping via Hormuz and stabilize prices.
