Oil prices plunge as Iran says Strait of Hormuz 'open' during ceasefire
7 hours ago
- #Oil Prices
- #Shipping
- #Geopolitics
- Oil prices dropped sharply after Iran announced the Strait of Hormuz would be fully open during the ceasefire.
- Brent crude fell to $88 per barrel from over $98, and global stock markets rallied on the news.
- The Strait had been largely closed since February, causing oil prices to spike above $119 per barrel.
- Maritime groups like BIMCO expressed ongoing safety concerns, advising ships to avoid the area.
- The closure also impacted fertilizer supplies, raising food prices, while petrol prices saw a slight dip in the UK.
- President Trump welcomed Iran's move but maintained a naval blockade until a permanent deal is reached.
- Shipping operators remain cautious, with some refusing to transit the Strait until safety is assured.
- Experts note the short ceasefire window limits oil transport recovery, and supply chain disruptions may persist for months.