US President Donald Trump on Wednesday, 17 June declared that a newly reached agreement with Iran would drive global oil prices lower and bolster the world economy, pointing to the reopening of the Strait of Hormuz — one of the most critical energy shipping lanes on the planet — as the central driver of market stabilisation.

Trump made the remarks at a press conference following the G7 summit in Évian, France, where he said energy markets had already responded positively to the deal and to easing tensions across the Gulf.

What Trump Said

'Oil prices are plummeting,' Trump told reporters, framing the agreement as a decisive break from fears of a protracted conflict that had threatened global supply chains. He noted that worst-case scenarios had not materialised: 'The oil never went to $350 a barrel,' he said. 'It went to $115, $120.'

Trump tied the Strait's reopening directly to commercial shipping stability. 'If we keep bombing, those ships won't be going,' he said, underscoring the waterway's role in keeping global crude flows intact.

Impact on Fuel Costs and Inflation

The President predicted that lower crude prices would cascade through to consumers and businesses, reducing operating costs and helping ease inflationary pressures. On domestic US fuel prices, he said: 'We're hitting in the threes now for gasoline, and that'll come down a lot lower.' He argued that cheaper energy is 'the biggest thing' for broad economic relief.

Why This Matters for India

The developments carry particular significance for major oil-importing nations, with India among the most closely watching. India sources the bulk of its crude oil requirements from Gulf producers, and any sustained disruption to the Strait of Hormuz — through which an estimated 20% of global oil trade passes — would directly affect domestic fuel prices and inflation management. Stable passage through the waterway is widely regarded as a cornerstone of India's energy security calculus.

This comes amid a broader pattern of Gulf tensions periodically rattling oil markets over the past several years, each episode prompting emergency reviews of India's strategic petroleum reserves and import diversification strategy.

Market Reaction and What Comes Next

Energy markets reacted positively to the announcement, according to Trump, with prices easing on reduced conflict risk. Analysts will now watch whether the Iran agreement holds and whether commercial shipping through the Strait normalises in the coming weeks. Any reversal — diplomatic or military — could quickly unwind the price relief Trump is projecting.