Global oil prices dropped sharply on Monday after the United States and Iran announced a framework agreement to end their conflict and reopen the strategic Strait of Hormuz shipping route.

Brent crude, the international oil benchmark, fell by 4.7 percent to around $83 per barrel, while U.S. West Texas Intermediate (WTI) crude declined to about $80 per barrel, its lowest level since March 2026.

The decline followed optimism that oil exports from the Gulf region could gradually return to normal, easing concerns over supply disruptions that had pushed crude prices above $100 per barrel during the conflict.

The Strait of Hormuz, through which roughly one-fifth of the world’s oil supply passes, has been largely disrupted since the outbreak of hostilities earlier this year. The announcement of a peace framework has boosted investor confidence and triggered a rally in global stock markets.

Energy analysts, however, caution that it may take weeks before shipping and production operations fully return to normal due to security concerns, mines in the waterway and a backlog of oil tankers.

If the downward trend in crude oil prices continues, consumers around the world could begin to see lower prices for petrol, diesel, aviation fuel and other petroleum products in the coming days and weeks. Countries that depend heavily on imported refined products may particularly benefit from the easing energy costs.