Crude oil drops 4% to near $83/bbl after Trump says US-Iran peace deal complete; gold rises 2.2%

After dropping to a 13-week low last week, the oil prices continued their downward trend as the positive signs from the US-Iran negotiations yielded both sides agreeing to a peace deal in the 16th week of the war.

At 7:05 am (IST), Brent crude oil prices were down 4.28% to $83.59 per barrel (bbl) on Monday’s market, compared to $87.33 per bbl at the previous commodity market close, according to Investing.com data.

The data further showed that Brent crude futures have dropped more than 11% in the last one week period, and were down 23% in the last one month. Oil prices were trading 18% lower over the last three month basis.

US-based West Texas Intermediate (WTI) prices were trading 5% lower at $80.64 per bbl on Monday, compared to $84.88 per bbl at the previous market close, according to the exchange data.

Although Trump announced a peace deal with Iran, media reports suggest that so far, the Israeli authorities have not commented on the development after their airstrikes in Beirut over the weekend.

When will Trump sign US-Iran peace deal?

On Monday morning, US President Donald Trump declared that, as a result of the third round of negotiations, the United States and Iran have now agreed on a peace agreement which is expected to be signed later this week.

“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” said Trump in his Truth Social post.

Trump also said that under the new peace deal, the Strait of Hormuz will witness a “toll-free” reopening, while the US military will immediately remove its Navy from the US blockade to fuel the global trade of crude oil.

“Ships of the World, start your engines. Let the oil flow!” said Trump in his post.

The US President also said that the US-Iran peace deal will be signed on Friday, June 19, 2026.

Gold prices today

At 9:36 pm (ET), the New York Mercantile Exchange-based COMEX gold prices were trading 2.2% higher at $4,331.50 per ounce on Sunday evening market hours, compared to $4,238.80 at the previous market close, as per the official data.

Gold prices were trading higher due to the higher demand for the precious metal at a lower US dollar rate on Monday, India time. Traders are likely fuelling the demand for gold as the benchmark dollar rate dropped after Trump’s recent announcement.

In cases of a lower dollar rate, the traders buy more quantities of gold due to the lower prices of the benchmark currency for a higher quantity of the precious metal.

Data collected from the Bloomberg US dollar spot index showed that the greenback was trading 0.18% lower at 99.572 on Sunday evening in the United States due to the subdued demand for the safe-haven currency, compared to the previous market close.