The price of oil hovered just above pre-war levels on Monday, a tentative calm after the US and Iran signed a landmark agreement that promises to release frozen funds and ease sanctions. President Donald Trump said Iranians will receive incentives when they “behave”, acknowledging that Tehran will keep its ballistic missiles under the deal.
The agreement, brokered after months of tension, marks a sharp reversal from the brinkmanship that earlier this year saw oil prices surge. Analysts had warned that any disruption to shipping through the Strait of Hormuz could send crude spiralling, but the diplomatic breakthrough appears to have steadied markets — for now.
“Oil prices stabilise after US and Iran sign deal to release frozen funds and ease sanctions.”
Brent crude traded at around $72 a barrel, little changed from levels before the crisis erupted, as traders digested the implications of the accord. The deal unlocks billions of dollars in Iranian assets frozen abroad and lifts some sanctions, though Trump's caveat that incentives depend on behaviour leaves room for future friction.
“The future is uncertain,” the Sky Business report noted, reflecting the fragility of the rally. While the immediate threat of a blockade in the Gulf has receded, the president’s declaration that Iran will retain its ballistic missile programme means long-standing disputes over Tehran’s military ambitions remain unresolved.
For now, the oil market is breathing a sigh of relief. But with Trump vowing to monitor Iran's conduct and sanctions relief tied to compliance, traders are watching for any sign the truce could unravel.