Oil prices slide as U.S.-Iran accord erases Strait of Hormuz risk

Crude fell for a second day on June 18 after the U.S. and Iran signed a peace agreement, prompting traders to unwind bets on a Strait of Hormuz closure. That waterway carries roughly one-fifth of global oil supply. When geopolitical risks priced into futures ease, long positions unwind swiftly—a mechanical repricing without any actual supply disruption. The accord's durability remains uncertain given past U.S.-Iran deal fragility and Congressional skepticism on sanctions relief.