Trump Cancels Iran Strikes, Oil Falls 2.9%
President Donald Trump announced on his Truth Social platform that he had cancelled the scheduled strikes and bombings against Iran after discussions and final points of a peace deal were approved by all parties, including the United States, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others. He also stated that the naval blockade will remain in full force until the transaction is finalized, with the signing time and place to be announced shortly.
Following the announcement, Brent crude futures for August delivery slid 2.9% to $90.37 per barrel at 14:23 ET (18:23 GMT), while U.S. West Texas Intermediate futures for July fell 2.7% to $87.61 per barrel.
Earlier, Trump had warned that the United States would hit Iran “very hard tonight” and targeted the strategic Kharg Island, Iran’s main crude export terminal. CNN reported overnight negotiations between Washington and Tehran on a preliminary peace deal that would include a mechanism to unfreeze Iranian funds, and Reuters cited similar sources.
U.S. Central Command described recent strikes on multiple Iranian military targets as “self‑defence” after an American helicopter was downed near the Strait of Hormuz. Iran retaliated with strikes on several U.S. bases and allies in the Gulf, with explosions reported in Kuwait, Bahrain and Jordan, and claimed to have blocked all ship traffic through the Strait of Hormuz, a claim CENTCOM denied. ING analysts noted that even if Iran cannot officially block the strait, it makes vessel crossings more difficult, suggesting that energy flows from the Persian Gulf will remain constrained.
The United States has become the world’s largest oil exporter for a third consecutive month, shipping 10.5 million barrels per day in May, ahead of Russia’s 7 million bpd and Saudi Arabia’s 5.9 million bpd, according to shipping data provider Marhlem. To offset the price shock from the Iran conflict, the U.S. has drawn on its Strategic Petroleum Reserve, while overall U.S. crude inventories fell by 7.2 million barrels in the week ended 5 June, far exceeding analysts’ expectations of a 3 million‑barrel draw. SPR inventories are now at their lowest level since August 2023.
The article was contributed by Ayushman Ojha and Scott Kanowsky and was published on 11 June 2026, with an update later the same day.