**Islamabad:** Global oil prices fell sharply on Monday after Pakistan announced that it had successfully facilitated a peace agreement between the **United States and Iran**, raising hopes of stability in the Middle East and easing concerns over energy supply disruptions.
During early Asian trading, **Brent crude oil** dropped nearly **4 percent to $83.81 per barrel**, while **US benchmark crude** declined almost **5 percent to around $80 per barrel**, as markets responded positively to the prospect of reduced geopolitical tensions.
## Pakistan Claims Diplomatic Breakthrough
Prime Minister **Shehbaz Sharif** announced that Washington and Tehran had reached a peace agreement following intensive diplomatic efforts involving Pakistan and several regional partners.
According to the Prime Minister, both sides have agreed to an **immediate and permanent cessation of military operations across all fronts, including Lebanon**. The official signing ceremony is reportedly scheduled to take place in **Switzerland on June 19**.
Shehbaz Sharif thanked the governments of the United States and Iran for choosing diplomacy and also acknowledged the support of **Qatar, Saudi Arabia, and Türkiye** in helping secure the agreement.
## International Reactions
Iranian Deputy Foreign Minister **Kazem Gharibabadi** confirmed that an understanding had been reached with the United States, while US President **Donald Trump** welcomed the development by posting:
> "Let the oil flow!"
The announcement immediately boosted market sentiment, particularly in the energy sector.
## Strait of Hormuz Reopening Raises Optimism
The reported agreement has fueled expectations that the **Strait of Hormuz**, one of the world's most strategically important energy corridors, could reopen after months of disruption.
Approximately **20 percent of global oil and liquefied natural gas (LNG) shipments** normally pass through the narrow waterway.
The route had faced severe disruptions following escalating tensions involving the United States, Israel, and Iran, triggering fears of prolonged supply shortages and sending global oil prices higher.
## Challenges Remain
Despite growing optimism, analysts warn that uncertainty still surrounds the implementation of the agreement and the security arrangements that may be required before normal shipping operations can resume.
Experts note that reopening the Strait of Hormuz could involve:
* Security clearances for commercial vessels * Potential mine-clearing operations * Managing a backlog of oil tankers awaiting transit * Coordinating maritime safety measures
"Peace comes first, but practical implementation will take time," one market analyst said.
## Nuclear Issue Still Unclear
US Senator **Lindsey Graham** also welcomed reports that an agreement had been reached to reopen the Strait of Hormuz. However, he stated that Congress would closely examine any final deal involving Iran's nuclear program.
At present, there has been **no indication that the reported peace agreement addresses Iran's nuclear program**, leaving several important questions unanswered.
## Markets Watching Closely
While the reported breakthrough has significantly improved market sentiment and lowered oil prices, investors and governments worldwide are awaiting further details and official documentation of the agreement.
The coming days are expected to be critical in determining whether the reported deal can deliver lasting stability in the region and restore normal energy trade flows.
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**Category:** World News | Energy | Geopolitics **Published By:** Pakistan Digital **Author:** Pakistan Digital News Desk