Oil Prices Drop Below $80 Per Barrel, Following the Reopening of the Strait of Hormuz

President Trump signed an Iran peace memorandum Thursday, reopening the Strait of Hormuz and dropping oil prices below $80 per barrel for the first time since early March, according to Business Insider.

What did the peace memorandum entail?

The Islamabad Memorandum of Understanding declares the immediate and termination of military operations on all fronts of both Iran and the U.S. and their allies. In addition to reopening the Strait of Hormuz, other military blockades must be lifted as the two countries achieve a final deal in a maximum of 60 days.

What are leaders saying? 

• President Trump: “These fools, who think I haven’t been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are ‘tumbling’ down, are either jealous, bad people, or stupid,” Trump said Thursday via his Truth Social platform.
• Iranian Preisdent Masoud Pezeshkian: “This is a historical document and a message from a powerful Iran: Peace will be realized in the shadow of mutual respect,” Pezeshkian said in a social media post, alongside images of the signed agreement.

In Texas, gas prices have been dwindling down, sitting at an average of $3.4930 for regular and $4.5400 for diesel. The national current average is $3.999 for regular and $5.129 for diesel, according to AAA.

“These fools, who think I haven’t been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are ‘tumbling’ down, are either jealous, bad people, or stupid,” Trump wrote Thursday on Truth Social.

Following the memorandum, the Strait of Hormuz was reopened and other military blockades are being lifted after over 100 days of fighting in the Middle East.

“This is a historical document and a message from a powerful Iran: Peace will be realized in the shadow of mutual respect,” Pezeshkian said on X.

Gas prices are projected to keep dropping following the agreemnt, with the price per barrel sitting at $77.65 at the time this article was written. A year ago today, the average for regular was $2.804 and $3.188 for diesel.