Oil falls about 10% after Iran reopens Strait of Hormuz

Iran's Foreign Minister Abbas Araqchi announced Friday that the Islamic Republic will fully reopen the Strait of Hormuz to commercial navigation for the remainder of a ceasefire with the United States. The announcement comes after approximately a month of blockade that saw 19 commercial ships forced to turn back over the weekend, according to U.S. Central Command, which stated that "no vessel evaded U.S. forces." Araqchi said all vessels will follow a coordinated route previously announced by Iran's Port and Maritime Organization, in line with the Lebanon ceasefire that Iran had made as a precondition for lifting navigation restrictions. U.S. President Donald Trump celebrated the reopening on social media, writing "Iran just announced that Iran's Strait is totally open and ready for free passage. Thank you!" The development triggered a sharp drop in oil prices, with Brent crude falling 10.42% to $89.03 per barrel and West Texas Intermediate dropping 11.11% to $84.17. The Strait of Hormuz represents one of the world's most critical maritime chokepoints, handling a significant portion of oil exports from Saudi Arabia, Iran, Iraq, and the United Arab Emirates, and any blockage had been causing concerns about global energy supply disruptions. The ceasefire agreement indirectly involves Hezbollah, the Iran-backed Lebanese militia, though implementation uncertainties remain. The temporary opening signals a partial normalization of operations through the strategic waterway, though analysts caution the situation remains fragile and dependent on the maintenance of the regional truce. The ceasefire is set to expire on Wednesday.