Global oil prices fell to their lowest level since March, with Brent crude dropping to around $83 per barrel after President Donald Trump announced a peace deal with Iran on Sunday.
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade,” Trump wrote, adding, “Ships of the World, start your engines. Let the oil flow!”
The president published the message at around 5:30 p.m. ET on Sunday, and since then, Brent crude oil futures have dropped over 5%. WTI crude oil, the U.S. benchmark, also fell by about 6% to below $80 per barrel.
Before the war, the national average was hovering below $3 per gallon. As of Monday morning, average gas prices in the United States are sitting at $4.07, which is down nearly 50 cents from a month ago, according to AAA.
A sustained decline in energy prices could bring other prices down as well. Inflation has ticked up the last couple of months with May’s reading showing the hottest inflation in three years at 4.2%.
The stock market futures are also set to open higher. Futures tied to the Dow Jones Industrial Average jumped nearly 1% after Trump announced the deal. The S&P 500 futures ticked up 1.2%, and the Nasdaq 100 added 2.1%.
The climb on Monday comes after a winning week for the stock market last week, which was helped by SpaceX’s record-breaking $75 billion Initial Public Offering. Other markets around the world also reacted positively to news of a deal between the United States and Iran, with South Korea’s Kospi jumping 5%, Japan’s Nikkei 225 gaining 5%, and Australia’s S&P/ASX 200 climbed 1.25%.
Iran’s Supreme National Security Council confirmed that a memorandum of understanding had been finalized and that fighting would come to an end “immediately and permanently” beginning Sunday night.
The Peace Deal is scheduled to be signed on Friday, June 19, in Switzerland with Vice President JD Vance set to attend the signing.
“I certainly plan to be there, but it’s possible the president himself could be there. We will figure it out, but what we know is that we have got a lot of work to do, but it is a very big win for the American people tonight,” Vance said on Sunday.