The 60-day agreement is intended to pave the way for broader negotiations toward a permanent ceasefire. Among its 14 key provisions are the cessation of hostilities between the two sides in the Middle East, mutual respect for sovereignty and territorial integrity, the reopening of the Strait of Hormuz, and the reopening of Iranian ports.
Iran is required under the deal to halt nuclear weapons development, while the United States has agreed to ease sanctions and release frozen Iranian funds held in international banks. Washington has also committed to contributing an estimated $300 billion for reconstruction of war-damaged areas.
Following the announcement, global oil prices quickly dropped back to pre-conflict levels. During peak tensions, crude oil had risen to as high as $120 per barrel, but it has since fallen to around $77.69. U.S. crude is trading at approximately $74.90 per barrel.
The Strait of Hormuz, through which about 20% of the world’s oil supply passes daily, is a critical route for energy and trade shipments between the Middle East and global markets.
The earlier spike in international oil prices had a direct impact on Rwanda, where fuel prices reached historic highs. On June 5, 2026, a litre of petrol cost 2,938 Rwandan francs, while diesel rose to Rwf 2,927, driven by global market volatility.
Speaking to the media on June 6, Prime Minister Dr. Justin Nsengiyumva said that without government subsidies, a litre of diesel would have cost Rwf 3,581, meaning the state was covering about 18.16% of the cost through subsidies.
U.S. President Donald Trump signed the agreement while attending a G7 meeting in France. Iran also confirmed that President Masoud Pezeshkian signed the document on June 17.
Speaking to the press on June 16, Minister of Finance and Economic Planning Yusuf Murangwa said that while the agreement was welcome news, Rwanda would take a cautious approach.
“So far, we have received good news that there are initial agreements on the war in the Middle East. But our principle is to wait and see. There are two main reasons for this. First, we want to see whether the agreement is actually effected and whether it holds for a long period of time,” he said.
Fuel prices in Rwanda are reviewed every two months, and the country also maintains strategic reserves to cushion against supply shocks.
Shipping routes from ports such as Dubai or Bandar Abbas typically take between six and 12 days to reach Mombasa in Kenya or Dar es Salaam in Tanzania, with additional time required for transport into Rwanda. This means that goods already in transit or stored in warehouses may still reflect earlier, higher prices.
Murangwa noted that even if global conditions normalize immediately, local markets would continue to feel the effects of previous disruptions.
“Second, even if everything were to stabilize today, there would still be a backlog of issues. So, we still expect that we’ll continue to see the effects of the blockage that happened.
“It is not yet clear when this will be resolved. We will have to observe how the global business and supply chain communities manage to unlock the backlog of goods that were stuck in the Gulf,” he said.
The initial agreement also provides for the removal of naval mines and other maritime obstacles in the Strait of Hormuz within 30 days. During this period, shipping volumes are expected to return to pre-conflict levels, with the United States withdrawing naval forces deployed in the area.
The agreement stipulates that commercial shipping should return to normal levels under Iranian supervision.
Rwanda maintains that its fuel reserves have not been affected since the start of the Iran conflict and says it is working to ensure stable supply in the domestic market, along with other essential goods.
According to the National Institute of Statistics of Rwanda, consumer prices increased by 12.9% in May 2026 compared to the same period in 2025.












































