Global crude oil prices tumbled by nearly 5 per cent on Monday, 15 June after the United States and Iran reached a landmark agreement and announced the reopening of the Strait of Hormuz, easing fears over potential disruptions to global energy supplies. The development sent shockwaves through commodity markets and lifted equities worldwide.

Oil Prices in Freefall

The international benchmark Brent crude fell as much as 4.90 per cent to $83.05 per barrel in early trade, while US West Texas Intermediate (WTI) crude dropped a sharper 5.74 per cent to around $80 per barrel. Market experts noted that Brent's decline toward the $83-per-barrel mark is expected to ease inflation concerns and provide additional support to global market sentiment.

What Trump Announced

US President Donald Trump confirmed the deal via his Truth Social platform, writing: 'The Deal with the Islamic Republic of Iran is now complete.' He simultaneously declared the reopening of the Strait of Hormuz, a critical maritime chokepoint through which roughly one-fifth of the world's crude oil supply passes. 'I hereby fully authorise the toll-free opening of the Strait of Hormuz and, simultaneously, the immediate removal of the United States naval blockade. Ships of the World, start your engines. Let the oil flow!' Trump wrote. According to reports, the two countries are expected to formalise the agreement with a memorandum of understanding to be signed in Switzerland on Friday.

Global Markets React

The breakthrough lifted risk appetite across global equity markets. Major Asian indices surged at the start of the week, with Japan's Nikkei, Hong Kong's Hang Seng, South Korea's KOSPI, and Indonesia's Jakarta Composite all trading higher — some gaining more than 5 per cent. US futures also traded firmly in positive territory. This comes amid months of heightened geopolitical tension in the Middle East that had kept a persistent risk premium embedded in oil prices.

Impact on Indian Markets

Back home, domestic equity benchmarks Sensex and Nifty opened strongly on Monday, with both indices rising more than 1 per cent in early trade. For India, which imports roughly 85 per cent of its crude requirements, a sustained decline in oil prices would translate into lower import bills, eased inflationary pressure, and improved fiscal headroom. The development is being closely watched by the Reserve Bank of India (RBI) and policymakers, given the outsized role energy costs play in domestic inflation dynamics.

What Comes Next

The signing of a formal memorandum of understanding in Switzerland later this week will be the critical next step in cementing the agreement. Analysts caution that oil markets may see continued volatility until the deal is officially ratified, and any breakdown in negotiations could swiftly reverse Monday's price declines. For now, the prospect of unimpeded flow through the Strait of Hormuz marks a significant de-escalation in one of the world's most closely watched geopolitical flashpoints.