Crude prices fall after U.S.-Iran ceasefire, Hormuz reopening reports

Crude prices fell to their lowest level since just after the Iran war began after reports of a ceasefire between the U.S. and Iran and the reopening of the Strait of Hormuz.

West Texas Intermediate, the U.S. benchmark, and Brent, the global benchmark, both fell 5% on the news, with WTI falling just below $81 a barrel in Monday trading on the New York Mercantile Exchange.

Energy expert Tom Seng, assistant professor of professional practice in energy finance at Texas Christian University, said questions continue to surround the ceasefire.

"We need confirmation from Tehran, not just the mediators in Pakistan," Seng told the Reporter-Telegram by email.

He noted the proposed memorandum of understanding expected to be signed Friday to begin a 60-day negotiation period for a peace settlement.

"Will Israel agree to cease attacks on Beirut which is an Iranian demand? Will the Strait of Hormuz be 'fully open'? Will Iran want to control it and collect tolls? They have hinted at doing so with Oman. What input will the Islamic Revolutionary Guard Corps have in this process? They are closely aligned with Hezbollah," Seng said.

Dean Lyulkin, CEO of Cardiff, said the market's feverish reaction shows it is not a 'sell the news' event.

"And it's not just excitement about the UFC brawl that took place on the White House lawn Sunday night," he told the Reporter-Telegram by email. "The rally tells us the market has not been sure an end to the conflict would hold and a lasting peace was not fully discounted into prices. From our point of view, this is a great thing for investors. It means this is unlikely to be a 'sell in May and go away' kind of summer."

Lyulkin injected a note of caution, writing, "We still expect the fourth quarter to be the strongest part of 2026, but don't get stuck holding too much cash or being too conservative this summer."

Copyright 2026 Tribune Content Agency. All Rights Reserved.