Global oil prices fell sharply on Friday after Iran announced that the Strait of Hormuz has been fully reopened to commercial shipping during the ongoing ceasefire period.
Brent crude dropped to about $88 per barrel, down from over $98 earlier in the day, as markets reacted to expectations of improved supply through the key global energy route.
Iranian Foreign Minister Abbas Araghchi said all commercial vessels would be allowed passage through the strait for the duration of the ceasefire, describing the route as “completely open.”
The Strait of Hormuz, which links the Gulf to the Arabian Sea, is a critical passage for global energy supplies, with around a fifth of the world’s oil and liquefied natural gas passing through it under normal conditions.
Markets responded positively to the development, with US and European stock indices rising. The S&P 500 gained about 0.8%, while major European markets, including France’s CAC 40 and Germany’s DAX, rose by more than 2%. London’s FTSE 100 also recorded gains.
The strait had faced disruptions in recent months following military tensions involving the United States and Israel, which had significantly reduced tanker movement and driven up global oil prices.
Before the conflict, Brent crude traded below $70 per barrel but later surged past $100 amid supply fears, peaking above $119 in March.
Iran’s decision to reopen the route follows a ceasefire arrangement in the region, though officials warn that restrictions on military vessels remain in place and broader tensions are not fully resolved.
US President Donald Trump welcomed the move, saying the waterway was “fully open,” but insisted that US restrictions on Iranian ports would remain until a wider agreement is reached.
BelfastTelegraph
