Crude oil is declining as ships move through the Strait of Hormuz — a critical chokepoint for roughly 20% of global oil supply — after news of an Iran-related war pact reduced near-term disruption risk. The geopolitical risk premium that had been supporting prices is now unwinding, pressuring both WTI and Brent.

The key question going forward is durability: ceasefire and peace arrangements in the Middle East have historically been fragile, and any breakdown could rapidly reverse the move. Watch for confirmation of the pact's terms, OPEC+ production response, and whether the broader Iran-related sanctions picture changes in parallel.