Oil prices plummeted by more than 10% on Friday following the surprise announcement that the Strait of Hormuz, a vital artery for global energy, has been reopened for commercial shipping.
The move comes as a ceasefire between Israel and Lebanon appears to be holding offering a rare moment of relief for a global economy battered by months of conflict.
The price of Brent crude, the international benchmark, tumbled to roughly $89 per barrel, a sharp drop from recent peaks near $120.
In a statement posted on social media, Iran’s foreign minister, Abbas Araghchi confirmed the news stating that passage for all commercial vessels through the waterway “is declared completely open” for the duration of the current truce.
While the reopening eases fear of a global energy famine, the situation remains tense.
President Donald Trump clarified that the US Navy’s blockade of Iranian ports remains “in full force” until a final peace deal is reached.
However, he expressed optimism that a resolution “should go very quickly in that most of the points are already negotiated.”
For now, the easing of this “Tehran tollbooth” has sent stock markets soaring and given motorists a much-needed break at the pump.
