Oil prices slide after Pakistan announces deal between US and Iran

Under the agreement, the key Strait of Hormuz waterway will be reopened, US President Donald Trump said. Oil prices slide after US and Iran sign peace deal Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. A petrol station worker fills the tank of a customer's vehicle in Peshawar, Pakistan, 3 April 2026. Oil prices slide after Pakistan announces deal between US and Iran Oil prices fell in early trade in Asia on Monday after Pakistan, which has been mediating an end to the US-Iran war, announced a deal that President Donald Trump said would see the reopening of the key Strait of Hormuz shipping route. Brent crude, the global oil benchmark, was 4% lower at $83.81 (£62.29) a barrel, while US-traded oil was down 4.7% at $80.89. Pakistan's prime minister Shehbaz Sharif said an official signing ceremony would be on Friday, 19 June in Switzerland. Iran's Deputy Foreign Minister Kazem Gharibabadi confirmed in a phone call on state TV that a deal with the US had been finalised, while Trump posted on social media to "let the oil flow!". But Vandana Hari from energy markets analysis firm Vanda Insights said a lack of detail on what has been agreed "is likely to inject unease and uncertainty into the market." This could mean a week of uncertainty and volatility for the oil market, she added. The strait had been effectively closed since shortly after the US and Israel launched airstrikes on Iran on 28 February. Tehran had threatened to attack vessels using the crucial waterway, through which around 20% of the world's oil and liquefied natural gas (LNG) normally passes. Global energy markets have been on a wild ride in recent months, with prices often rising or falling sharply in response to developments in the US-Israel war with Iran. Brent crude, which was trading at around $70 a barrel before the conflict started, peaked at about $120 during the war. Energy market experts have also warned that the movement of oil through the strait is unlikely to immediately return to pre-war levels. Andrew Lipow from consulting company Lipow Oil Associates said mines would first need to cleared from the waterway, which could take from a few weeks to up to six months. He also said there is a large backlog of tankers waiting to use the waterway and that restarting oil production and getting the loading of ships back to normal levels could take weeks. Asian stock markets also rose on Monday as investors welcomed the deal. Japan's Nikkei 225 share index was 4.3% higher in morning trade while the Kospi in South Korea was up by more than 5%. The region was hit particularly hard by higher energy prices as it is heavily reliant on the Middle East for its oil and LNG supplies. Close-up of a woman holding and reviewing a grocery receipt after shopping. UK economy contracts as Iran war impact felt Woman pointing at computer screen with a chart on it The companies making billions from the Iran war Motorists wait in line to purchase fuel at a petrol station in the Mohammadpur area of Dhaka, Bangladesh. Several people are standing in a queue with various petrol cans waiting to be filled How Iran war laid bare the world's reliance on Gulf oil and gas Some six million bosses of American firms will be entering retirement between now and 2035. Why has the American economy continued to outperform so many of its peers, despite facing the same global shocks? Agave plants grow wild in India and new distillers are using them to create a spirits industry. The announcement of an Iran deal was a welcome birthday gift for the president – but its success or failure may hinge on the details. Pakistan says the deal includes Lebanon, but recent ceasefires there have failed to take hold. Israel says it targeted the Iran-backed armed group Hezbollah, as Tehran warns this could derail a US-Iran deal to end the fighting. The US president's comments come as Iran says an exact date has not been decided. US officials say the deal will lead to the destruction of Iran's enriched uranium, but details are still to be worked out.