Oil prices fall Globally as Iran reopens Strait of Hormuz, easing supply fear
Global oil prices dropped sharply on Friday after Iran announced the reopening of the Strait of Hormuz to commercial shipping, easing fears over supply disruptions in the Middle East.
Brent crude, the international oil benchmark, fell by about 9 percent to $89.84 per barrel, marking its first drop below $90 in two weeks. The last time Brent traded below that level was on March 30, after previously reaching around $88 per barrel on March 19.
U.S. West Texas Intermediate (WTI) crude also declined significantly, losing 11 percent to settle at $83.90 per barrel.
Iran’s Foreign Minister, Abbas Araghchi, confirmed in a post on X that the Strait of Hormuz had been fully reopened to commercial traffic. The announcement came just hours after a 10-day ceasefire between Israel and Lebanon took effect.
However, Araghchi noted that vessels must pass through a “coordinated route” designated by Iran’s maritime authorities, adding that the arrangement would remain in place only for the duration of the ceasefire.
Earlier in the week, the United States Central Command said the blockade had been fully implemented. U.S. President Donald Trump also stated that the naval blockade would continue “until such time as our transaction with Iran is 100% complete.”
Oil prices had surged in recent weeks amid rising geopolitical tensions in the region. But with the reopening of the crucial shipping route, concerns over supply shortages have eased, triggering the latest decline in global crude prices.