West Texas Intermediate for July delivery dropped $2.69 to $74.10 per barrel by 11:10 a.m. ET, while August Brent crude fell $2.55 to $77.00. The deal, signed Wednesday by President Trump and Iranian President Masoud Pezeshkian, hinges on the lifting of U.S. sanctions on Iranian oil sales and port restrictions. Analysts suggest this move threatens to unleash a wave of previously trapped supply onto the market, effectively cooling prices across the energy complex.

Refined products mirrored these losses, with July ULSD falling 14.03 cents and RBOB gasoline futures sliding 3.22 cents. Despite the geopolitical breakthrough, experts remain divided on the speed of normalization. Goldman Sachs projects Persian Gulf exports could reach pre-conflict levels by late July, though the bank noted that enduring risk aversion among shipowners may dampen the immediate recovery. Meanwhile, U.S. consumers saw relief at the pump as the national average for gasoline dropped below $4 per gallon for the first time since March.