According to Axios, oil prices fell sharply Sunday after the U.S. and Iran agreed to extend their ceasefire and reopen the Strait of Hormuz—a shipping lane carrying roughly a fifth of the world's oil supply. Brent crude dropped 3.6 percent to eighty-four dollars a barrel. It's the biggest diplomatic breakthrough of the conflict, and markets responded immediately: U.S. gas prices, which spiked to four dollars fifty-six in May, have fallen to about four dollars and seven cents. Full recovery will take time. Ship operators may hesitate to use the route, and Persian Gulf producers need time to boost output after months of restricted sales. But the deal signals that the energy shock gripping markets since February may finally be turning a corner.

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