Crude Oil Prices Dip Amid US-Iran Peace Deal and Strait of Hormuz Traffic

Crude oil prices have seen a notable decline this week, influenced by the recent peace agreement between the US and Iran. As tanker traffic through the Strait of Hormuz increases, analysts caution that this downward trend may be temporary. Predictions suggest that oil prices could rise significantly by 2026 due to supply disruptions. Additionally, several vessels bound for India have successfully navigated the Strait following the signing of a Memorandum of Understanding aimed at resolving regional conflicts. This article explores the current state of the oil market and the implications of geopolitical developments.

By Narendra Chaudhary Jun 24, 2026, 10:19 IST

Current Trends in Crude Oil Prices

This week has seen a steady decline in crude oil prices, as market participants respond positively to the peace agreement between the US and Iran while keeping a close watch on tanker movements in the Strait of Hormuz. At one point, Brent Crude prices fell below $77 per barrel, while WTI Crude dipped below $73 per barrel. However, analysts warn that this downward trend may not last long. According to S&P Global Energy, oil prices could surge to $90 per barrel by the latter half of 2026 due to decreasing global oil inventories stemming from supply interruptions linked to the West Asia conflict.

US President Donald Trump noted that on Monday, 19 million barrels of oil passed through the Strait of Hormuz, marking a new record. Historical data from the US Energy Information Administration (EIA) suggests that prior to the conflict, the average daily flow through the Strait was around 19 to 20 million barrels. However, the specific figure cited by Trump, shared on his social media platform, has not yet been confirmed by industry analysts.

As reported, eleven vessels bound for India have successfully navigated the Strait of Hormuz following the signing of a Memorandum of Understanding (MoU) aimed at resolving the West Asia conflict. External Affairs Ministry Spokesperson Randhir Jaiswal confirmed on Tuesday that there are currently ten Indian-flagged ships in the Persian Gulf, with two having recently arrived. He stated, 'Since the MoU was signed on June 17, eleven vessels heading to India have transited through the Strait of Hormuz.' These include three Indian-flagged crude oil tankers, each carrying over 285,000 MT of crude oil, along with one foreign-flagged LPG carrier, one foreign-flagged crude oil tanker, and six foreign-flagged bulk carriers transporting fertilizer. Jaiswal expressed hope that the remaining Indian-flagged vessels would also be able to pass through the Strait soon.