The selloff dominated the week, pushing prices from a high of $81.00 down to a low of $72.83. Market participants pivoted rapidly from fears of supply disruptions in the Persian Gulf to the reality of increased output. While domestic inventory data provided some underlying support, the diplomatic thaw acted as a powerful bearish catalyst, effectively neutralizing the supply concerns that had propelled prices higher earlier in the year.

At the center of this shift is a nascent U.S.-Iran agreement aimed at stabilizing the Strait of Hormuz. The accord, which the White House submitted to Congress on June 18, would grant a sanctions waiver allowing Iran to resume commercial oil exports. Traders reacted by aggressively stripping out the volatility premium associated with the region, betting that the resumption of Iranian shipments will fundamentally alter the global supply-demand balance.