LONDON – Relief for global energy markets as Iran reopened Strait of Hormuz to all commercial vessels during a ceasefire period, and it quickly pushed oil prices down by nearly 10% amid easing fears over potential disruption in the world’s most critical oil artery.
Soon after the announcmenet, Brent crude dipped by $8.46 (8.5%) to $90.93 per barrel, while US West Texas Intermediate (WTI) sank $8.87 (9.4%) to $85.82. The downward spiral deepened across energy benchmarks, with WTI later sliding to around $84.00 (-11.29%).
Global Oil Prices
| Indexes | Last | Change | % Change |
| WTI Crude | 84.00 | -10.69 | -11.29% |
| Brent Crude | 89.37 | -10.02 | -10.08% |
| Murban Crude | 93.46 | -8.20 | -8.07% |
| Natural Gas | 2.646 | -0.001 | -0.04% |
| Gasoline | 2.934 | -0.230 | -7.26% |
| Heating Oil | 3.348 | -0.485 | -12.66% |
Brent dropping to $89.37 (-10.08%), Murban crude falling over 8%, and major losses seen across refined products, including gasoline (-7.26%) and heating oil (-12.66%). Even natural gas briefly held steady, down only marginally.
Foreign Minister Abbas Araghchi announced that, in line with a ceasefire arrangement linked to developments in Lebanon, all commercial shipping would be allowed to pass through the Strait of Hormuz for the remainder of the ceasefire period. He emphasized that vessels would continue along pre-coordinated routes already outlined by Iran’s Ports and Maritime Organisation.
The announcement was quickly echoed in global political commentary. US President Donald Trump praised the move on Truth Social, stating that Iran had effectively reopened the strait and declaring it “fully open and ready for full passage,” a statement that helped reinforce market expectations of reduced immediate supply risk.
Strait of Hormuz sits at the center of global energy security. It is a narrow but vital maritime chokepoint linking the Persian Gulf to the Arabian Sea, bordered by Iran to the north and Oman and the United Arab Emirates to the south. At its narrowest, the channel is just about 33 kilometers wide, yet it is deep enough to handle the world’s largest oil tankers carrying millions of barrels of crude.
At least 20pc of the world’s oil and liquefied natural gas passes through this single waterway, making it one of the most sensitive pressure points in global geopolitics. Any hint of disruption has historically sent shockwaves through energy markets, while any easing of tension produces sharp price reversals like the one seen today.
20 million barrels of oil and petroleum products flow through the strait every day—amounting to nearly $600 billion in annual global energy trade. The shipments come from major Gulf producers including Iraq, Kuwait, Qatar, Saudi Arabia, the UAE, and Iran itself.
Iran reopens Strait of Hormuz to all Commercial Shipping during Ceasefire
