Crude oil prices have fallen sharply following the June 14-15 announcement that the United States and Iran have reached a framework agreement to end their conflict. The deal, which is in the form of a Memorandum of Understanding (MOU), is expected to be formally signed on June 19 in Switzerland.
The MOU extends the existing ceasefire for 60 days and sets the stage for broader nuclear negotiations. But for oil markets, the immediate catalyst is clear: the reopening of the Strait of Hormuz.
