Oil prices plunge 10% after Iran opens Strait of Hormuz, US reacts
Oil
Abdullateef Fowewe
Global oil prices have tumbled 10% on Friday after Iran’s Foreign Minister Abbas Araghchi announced that the Strait of Hormuz remains “fully open” to all commercial vessels for the rest of a 10-day Israel-Lebanon ceasefire, easing fears of supply disruptions through the vital waterway.
The Strait of Hormuz, which handles about 20% of the world’s crude oil exports, had been a flashpoint amid escalating regional tensions, Dailyeconomy reports.
Araghchi’s statement on X confirmed unrestricted access along a “pre-set coordinated route” managed by Iran’s Ports and Maritime Organisation, signaling no immediate threats to shipping.
U.S. President Donald Trump quickly amplified the news on Truth Social, writing, “Iran has just announced that the Strait of Iran is fully open and ready for full passage. Thank you!”
Markets reacted swiftly, with Brent crude dropping sharply as traders unwound positions built on disruption risks.
The plunge underscores the strait’s outsized influence on energy prices.
The announcement comes during a fragile ceasefire between Israel and Lebanon, with no further details on post-ceasefire arrangements
