Oil Prices Tumble Amid Hopes for Us-iran Agreement

WHO:

The Guardian - President Trump claimed he is close to reaching a peace deal with Iran.

Bloomberg - Fereidun Fesharaki, Chairman Emeritus of FGE NexantECA, provided insights on oil prices.

WHAT:

The Guardian - Global oil prices fell to lows not seen since the first week of the Iran crisis.

The Guardian - Brent crude oil prices began to tumble from about $93 a barrel.

The Guardian - Oil prices traded briefly below $85 a barrel and later at about $87.50, marking a 3% fall on the day.

Bloomberg - Fesharaki predicts oil prices could rise to $150 a barrel if the Strait of Hormuz remains closed by August and potentially reach $200 a barrel by the end of the year.

WHERE:

The Guardian - The Strait of Hormuz, a vital trade route for oil shipments.

WHEN:

The Guardian - President Trump called off military strikes against Iran scheduled for the evening.

Bloomberg - Fesharaki spoke on June 11 on Bloomberg Television.

WHY:

The Guardian - President Trump stated that talks with Iran had progressed, leading to hopes for a peace deal.

The Guardian - The oil market slump is attributed to a rebalancing of the market due to various factors, including import cuts from China and stealth crude exports.

HOW:

The Guardian - The market reacted positively to the news of potential peace talks, driving oil prices down.

The Guardian - Goldman Sachs expects oil prices to average $90 a barrel in the last quarter of the year as oil flows normalize from August.

(UPDATED June 12, 2026 14:03 UTC)

President Trump has announced that he is close to reaching a peace deal with Iran, which has led to a positive market reaction and a significant drop in global oil prices. Brent crude oil prices have fallen from about $93 a barrel to around $87.50, marking a 3% decline, while experts like Fereidun Fesharaki predict that prices could soar to $150 a barrel if the Strait of Hormuz remains closed by August. As the oil market adjusts due to factors like import cuts from China, Goldman Sachs anticipates that prices will average $90 a barrel in the last quarter of the year as flows normalize.