Oil prices fell sharply on Friday, April 17, after Iran’s foreign minister announced that the Strait of Hormuz would remain “completely open” to commercial shipping for the duration of the ongoing ceasefire.
Brent crude, the global benchmark, dropped 9.5% to just under $90 per barrel, while U.S. benchmark WTI declined 9.6% to $82.60 per barrel.
“In line with the ceasefire in Lebanon, passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire,” Iranian Foreign Minister Seyed Abbas Araghchi said in a post on X.
The announcement came a day after former U.S. President Donald Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire.
Reopening the vital shipping route, even temporarily, eased tensions in global energy markets that had been unsettled by the conflict.
The development also lifted U.S. stock futures, with the Dow Jones Industrial Average rising 520 points (1.1%), the S&P 500 gaining 0.8%, and the Nasdaq 100 advancing 0.9%.
Despite the steep drop, analysts noted that both Brent and WTI crude prices remain higher than their pre-conflict levels. Investors are continuing to watch developments closely, as the ceasefire is still fragile and further talks between Washington and Tehran are expected in the coming days.
