U.S.–Iran pact slashes oil prices, prompting fuel price freezes in Dominican Republic and policy shifts in Chile and Ar​

The United States and Iran signed a provisional memorandum to end hostilities and reopen the Strait of Hormuz. Within hours, Brent crude fell to about $78‑$79 per barrel and U.S. WTI to $75‑$76, the lowest levels since early March, as markets priced in a rapid return of Iranian oil to global supply.

In response, the Dominican Republic announced that essential fuel prices – premium and regular gasoline, diesel and LPG – will remain frozen for the next 90 days, backed by a RD$399.4 million subsidy and modest cuts to secondary fuels such as avtur and kerosene. Chile’s opposition called for the re‑activation of the MEPCO price‑stabilisation mechanism to pass the international price decline to consumers, while economists noted the drop could help temper inflation. Argentina’s Milei administration highlighted the surge in oil‑related revenues and improved fiscal buffers as a result of higher export earnings. In Mexico, officials said the oil price fall should bring diesel back to pre‑conflict levels and discussed enforcement of gasoline‑price caps.

Analysts from Goldman Sachs and BNP Paribas expect Gulf exports to recover to pre‑war levels by mid‑year, while the broader market anticipates that the easing of sanctions and the reopening of the Hormuz corridor will sustain lower crude prices for the foreseeable future.