Oil Prices Plummeted To A Multi-month Low

• 18.06.2026, 16:18

Iranian oil is returning to the market faster than expected.

Oil prices fell by more than 1% on Thursday, reaching their lowest level since the first trading day following the start of the war with Iran.

This was reported by Reuters.

The price of Brent crude fell by $1.02 (1.28%) to $78.53 per barrel. U.S. WTI crude oil fell by $1.48 (1.93%) to $75.31 per barrel.

Brent fell to its lowest level since March 2—the first trading day after the U.S. and Israeli strikes on Iran. WTI fell to its lowest level since March 4.

Why Prices Are Falling

The agreement between the U.S. and Iran provides for an end to the conflict, the reopening of the Strait of Hormuz, and the easing of sanctions against Tehran.

The 14-point memorandum launches a 60-day negotiation period, during which Iran will ensure free passage through the Strait of Hormuz—a key oil and gas shipping route.

Full traffic through the strait is expected to resume within 30 days.

“Energy markets continue to actively price in a faster-than-expected return of Iranian barrels,” explained IG analyst Tony Sycamore.

Bank Forecasts

Goldman Sachs expects exports from Gulf countries to return to pre-war levels by the end of July, with crude oil production recovering by October. According to the bank’s estimates, for this to happen, supply volumes from the Strait of Hormuz region must increase by 13 million barrels per day—to approximately 70% of pre-war levels.

BNP Paribas is more cautious: the bank views $75 per barrel as a “sustainable floor for the near future,” given supply losses and increased demand. Before the war, Brent traded at $60–70.

The China Factor

China is putting additional pressure on prices.

According to a forecast by PetroChina’s research division, the world’s second-largest oil consumer will consume 753 million metric tons in 2026—4.9% less than in 2025—due to the transition to new energy sources and high prices.