Oil Plunges to Two-Month Lows as US-Iran Peace Deal Nears

Oil prices extended sharp losses through June 13, with WTI dropping to $84.60 and Brent to $87.04—both two-month lows—after reports of an imminent US-Iran memorandum raised hopes the Strait of Hormuz would reopen. The selloff began June 11 when President Trump canceled planned strikes, sending prices from above $91 to below $87 within minutes. Further declines accelerated June 12 after Iran confirmed deal details, erasing the geopolitical risk premium and pushing both benchmarks down more than 4% for the week. Adding to pressure, OPEC cut its 2026 demand growth forecast to 970,000 bpd while US production estimates rose.