The oil prices have crashed shockingly after the Prime Minister (PM) of Pakistan, Shehbaz Sharif, officially announced a peace deal between the US and the Islamic Republic of Iran.
PM Shehbaz, in his tweet on X on Monday, announced that the peace deal between the US and Iran has been reached.
Oil prices crashed after one PM Shehbaz Sharif X Post
— Faisal Ranjha (@ranjha001) June 14, 2026
The world owe Pakistan a big gratitude, we have saved you all from this pointless madness! #PakistanZindabad pic.twitter.com/3t7603Z5Yg
Oil prices dropped sharply, and stock markets rallied across Asia on Monday after news of a peace agreement between the US and Iran raised hopes of lower energy costs and reduced inflation pressures worldwide.
The US President, Donald Trump, in his post on Truth Social, has also announced the removal of the US Naval blockade from the Strait of Hormuz, a key route for global oil shipments.
He also encouraged the ships stranded there for months to resume their journey towards their specific countries.
The prospect of improved stability in the Middle East lifted investor sentiment, sending Brent crude down 4% to $83.80 a barrel. US crude fell 4.3% to $81.23 a barrel, although prices remained above levels seen before the conflict began.
Asian share markets responded positively to the news, with investors moving into riskier assets. Futures linked to major US stock indexes also rose, signalling a stronger opening on Wall Street.
Analysts said the possibility of sustained lower energy prices could ease concerns among central banks that have been battling inflation.
Several major central banks, including the US Federal Reserve, the Bank of England and the Bank of Japan, are due to announce policy decisions this week.
However, questions remain over how shipping through the Strait of Hormuz will operate under the agreement.
The Iranian officials said maritime traffic would be regulated jointly by Iran and Oman, raising concerns among some analysts about potential restrictions on international trade.
“The lack of detail on shipping arrangements remains a concern,” said Sean Callow, a senior foreign exchange analyst at ITC Markets.
He added, “Nevertheless, markets are focused on the immediate improvement in risk sentiment and the likelihood of lower energy prices.”
The decline in oil prices also supported government bond markets and weakened the US dollar against major currencies. Gold prices rose as lower bond yields increased the appeal of non-interest-bearing assets.
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