Will fuel prices finally drop? Market reacts to US-Iran deal
The price of oil has fallen below $80 per barrel. This is the first time since March 3, 2026. The market is reacting to reports of a preliminary agreement between the US and Iran.
Fuel prices are one of the most popular topics in Norway and across Europe.
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North Sea oil has been getting cheaper for several days. The decline followed reports that the US and Iran had reached a memorandum of understanding that includes opening the Strait of Hormuz. Since midnight on June 16, prices have dropped by about 4 percent.
Oil prices drop. Hormuz back in play
The agreement is not final. It provides for a 60-day ceasefire following the war that broke out on February 28. During this time, the parties are to continue negotiations. Iran is expected to be ready to open the Strait of Hormuz. Bloomberg reports that the situation is expected to remain stable throughout the truce period.
Key disputes are on the table. US and Iranian negotiators are to discuss Iran's nuclear and missile programs, as well as Tehran's support for armed groups in other Middle Eastern countries. The details of the agreement are unknown. It is also unclear whether Israel will agree to respect the ceasefire with Lebanon.
Key disputes are on the table. US and Iranian negotiators are to discuss Iran's nuclear and missile programs, as well as Tehran's support for armed groups in other Middle Eastern countries. The details of the agreement are unknown. It is also unclear whether Israel will agree to respect the ceasefire with Lebanon.
The situation in the Strait of Hormuz is analyzed by commodity market experts almost daily.Photo: MC2 Indra Beaufort, Public domain, via Wikimedia Commons
Selected Brent oil prices (per barrel) in the last 30 days:
May 16 - $106.57,
May 19 - $108,
May 20 - $101.69,
May 25 - $95.25,
May 29 - $90.39,
June 1 - fluctuations from $92.86 to $96.82,
June 8 - $96.66,
June 9 - $89.47,
June 11 - $93.86,
June 12 - $86.39,
June 16 - $79.97.
Stock market reacts. Oil company shares fall
The drop in oil prices has affected trading in Oslo. Since the close of the Oslo Stock Exchange (Oslo Børs), the price of crude has fallen by about $2.5 per barrel. Shares of several oil companies have declined. The main Oslo Børs index is down 0.14 percent.
Equinor is down 0.83 percent. Vår Energi is down 2.09 percent, and Aker BP is down 1.15 percent. Handelsbanken wrote in a Monday note that the market saw the agreement as a significant breakthrough, although the most difficult issues remain unresolved. Thina Saltvedt from Nordea Markets pointed out that the talks could still collapse, which could push oil prices up again.
Equinor is down 0.83 percent. Vår Energi is down 2.09 percent, and Aker BP is down 1.15 percent. Handelsbanken wrote in a Monday note that the market saw the agreement as a significant breakthrough, although the most difficult issues remain unresolved. Thina Saltvedt from Nordea Markets pointed out that the talks could still collapse, which could push oil prices up again.
Donald Trump wrote on Truth Social that the Strait of Hormuz is to be opened and mines removed. He also added: "Let the oil flow." Further information will show whether these announcements will translate into concrete actions during the 60-day truce.
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