Overview
- A framework peace deal between the United States and Iran was announced Monday and is reported to reopen the Strait of Hormuz, triggering immediate market moves.
- Brent crude fell sharply to about $83 a barrel after the announcement and wholesale fuel values have started to decline, producing early retail price drops in several countries.
- U.S. gasoline averages have fallen for three straight weeks but remain above $4 per gallon, while some states still show prices above $5 per gallon.
- The RAC Foundation estimates UK motorists have paid about £4 billion extra since the conflict began and the Treasury has collected roughly £670 million more in VAT because pump prices rose.
- Experts warn wholesale savings usually take two to four weeks to reach forecourts, retailers will pass through cuts unevenly, the deal is scheduled for signing on June 19, and the situation could change if the agreement does not hold.