WTI crude oil plunged nearly 5% to $80.73 per barrel on Monday, June 15, 2026, while Brent dropped over 4% below $84, marking a three-month low. The sharp selloff follows news that the United States and Iran have reached an interim deal to reopen the Strait of Hormuz, scheduled for signing June 19 in Switzerland. The agreement aims to restore passage through the critical waterway that previously handled roughly one-fifth of global oil supply.
The collapse drains the war premium that had supported prices above $85 since March, with WTI breaking through its 200-day exponential moving average at $80. Traders now face dual uncertainty: assessing the timeline for physical supply recovery while monitoring a fragile 60-day window for broader US-Iran nuclear negotiations that could still fall apart. Technical support levels are proving less relevant as geopolitical developments, not chart patterns, drive price action in this volatile environment.
FXnCO Insight
Energy traders should prepare for continued volatility through late June as the Iran deal faces its first real implementation test before the nuclear talks deadline.
Source: Finance Magnates