President Donald Trump addressed oil market dynamics during his G7 Summit meeting with Egypt, noting that the U.S.-Iran nuclear and Strait of Hormuz deal has contributed to a decline in oil prices toward pre-conflict levels while stock markets rose. The agreement, expected to be finalized on Friday, includes a 60-day ceasefire and plans to fully reopen the strategically vital waterway.
Market participants remained cautiously optimistic as traders awaited details on whether the negotiations would result in commercial traffic through the Strait of Hormuz, a critical chokepoint for global oil shipments. Current Brent Crude prices hovered around $79 per barrel after briefly surging past $80, reflecting guarded market confidence.
West Texas Intermediate Crude followed a similar trend, rising to near $77 before settling at $76.60. Analysts emphasized that the price reductions remain below pre-war levels, which had seen oil trade between $65–$75 per barrel.
Before U.S. strikes in February, approximately 20% of global crude oil passed through the Strait of Hormuz. Prices later spiked to a wartime peak of $120 per barrel before declining following the announced framework.
A navy vessel is seen sailing in the Strait of Hormuz, a vital waterway through which much of the world’s oil and gas passes. (Sahar AL ATTAR / AFP via Getty Images / Getty Images)
The market’s improved sentiment aligns with Trump’s claims that the deal will restore normalcy. During a bilateral session in France, he stated, “Oil prices might get lower than where they were before the war,” citing the agreement’s progress.
President Donald Trump waves before boarding Air Force One shortly after hosting a UFC event on the White House lawn. (Anna Moneymaker / Getty Images)
While specifics of the agreement remain unclear, Trump dismissed claims about a leaked memorandum of understanding, asserting the U.S. would not contribute financial aid to Iran’s economy. He categorically denied involvement in a proposed $300 billion fund, stating, “We’re not investing—we’re not putting up $0.10.”
![Eos Energy Enterprises Shares Surged 11.6% on European Battery Storage Partnership Announcement[TITLE]](https://i2.wp.com/www.nasdaq.com/sites/acquia.prod/files/2019-05/0902-Q19%20Total%20Markets%20photos%20and%20gif_CC8.jpg?w=1024&resize=1024,1024&ssl=1 "Eos Energy Enterprises Shares Surged 11.6% on European Battery Storage Partnership Announcement[TITLE]")
