Oil Price Today, June 19, 2026: Crude Oil Falls to $79.2 as Hormuz Supply Starts to Normalise After US-Iran Peace Deal

Mumbai, June 19: Oil prices extended losses on Friday as crude supplies began moving through the Strait of Hormuz following the signing of an interim peace agreement between the United States and Iran, easing concerns over disruptions to one of the world’s most important energy shipping routes. Brent crude futures fell 0.8% to around $79.2 per barrel, while U.S. West Texas Intermediate crude fell the same to $75.2. 

The reopening of the Strait of Hormuz has allowed stranded oil cargoes to begin reaching global markets. More than 85 million barrels of crude that had been trapped in the Gulf region are expected to gradually enter supply chains, while sanctions relief for Iranian oil is also expected to boost exports. Three Saudi-flagged supertankers carrying roughly 6 million barrels of crude were among the first vessels to transit the waterway after the agreement was signed. 

Supply Surge Weighs on Prices 

Both benchmarks extended decline as crude supplies started moving through the Strait of Hormuz. Source: oilprice.com 

Market participants are increasingly focused on the prospect of a significant increase in oil supply from the Middle East. Producers including Kuwait and Iraq are preparing to restore production levels, while analysts expect Gulf exports to gradually return to pre-war levels over the coming months. Additional Iranian barrels are also expected to enter the market following the easing of restrictions under the peace accord. 

Industry estimates suggest that tens of millions of barrels of crude remain stranded in the Gulf and could be released over the coming weeks, creating downward pressure on prices. Weak spot demand in parts of Asia, particularly China, has further reinforced expectations of a near-term supply surplus. 

Risks Remain Despite Market Optimism 

Despite the decline in oil prices, traders remain cautious about the durability of the agreement. Shipping activity through Hormuz has resumed only gradually, and industry executives have warned that it could take weeks before confidence returns fully and traffic normalises. Ongoing tensions involving Israel and Hezbollah, along with uncertainty over the implementation of the U.S.-Iran accord, continue to pose risks to supply flows. 

For major oil-importing countries such as India, lower crude prices could provide relief by easing inflationary pressures and reducing import costs. The sharp retreat in oil has also improved sentiment across global equity markets, helping support risk assets in Asia and beyond. 

Source

• rates from oilprice.com