Crude oil today: Live updates

Oil prices tumbled after President Donald Trump said the U.S. has completed a deal with Iran to reopen the Strait of Hormuz.

U.S. crude oil futures for July delivery were down over 5% to $80.25 per barrel by 10.25 p.m. ET, hitting the lowest level since March 10. Brent futures, the international benchmark, for August delivery traded about 4.26% lower to $83.31 per barrel, also lowest since March 10.

“The Deal with the Islamic Republic of Iran is now complete,” Trump said in a Truth Social post. Hormuz will open without a toll system and the U.S. will end its naval blockade of Iran, the president said.

“Ships of the World, start your engines,” Trump said. Let the oil flow!”

Trump, in a later post, said that the strait would open on Friday, the day the official peace agreement signing ceremony is set to be held in Switzerland.

“With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” he said.

About 20% of the world’s oil supplies passed through the Hormuz strait before tanker traffic plunged in early March due to Iranian attacks. The disruption to Hormuz has triggered the biggest oil supply disruption in history.

Pakistan Prime Minister Shehbaz Sharif said Sunday that the U.S. and Iran have declared an immediate and permanent termination of military operations on all fronts, including Lebanon. The Pakistani prime minister has served as a mediator between the U.S. and Iran.

“We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict,” Sharif said. Mediators will facilitate meetings this week to lay the foundation for technical talks and the official signing ceremony, he said.

The CEO of the oil tanker company Frontline told CNBC last week that he expects ship traffic through Hormuz to pick up quickly if the U.S. and Iran reach a credible deal.

“I’m actually very optimistic the minute the tide turns and the U.S. and Iran have found some sort of agreement, at least not to attack shipping, that those transits are going to resume pretty quickly,” said Frontline CEO Lars Barstad.

U.S. futures rose, with those tied to the Dow Jones Industrial Average adding 342 points points, or 0.7%. S&P 500 futures climbed 0.9%, while Nasdaq 100 futures popped 1.4%.

Asian equities surged Monday. South Korea’s Kospi jumped 5.1%, Japan’s Nikkei 225 climbed 3.6%, and the broader Topix advanced 2.6%. Australia’s S&P/ASX 200 gained 1.3%.