Global oil prices fell sharply after Iran announced the reopening of the Strait of Hormuz for commercial shipping during the ceasefire period. The development is significant as the strait is a key route for global energy supplies. The news triggered immediate reactions in international energy markets.
Brent crude prices dropped by more than 11 percent following the announcement. West Texas Intermediate also fell sharply in response to easing supply concerns. Moreover, traders reacted to expectations of improved shipping stability in the region.
Read more: Iran opens Strait of Hormuz to commercial shipping
Iranian Foreign Minister Abbas Araghchi said the strait has been fully opened for commercial vessels. He stated that the route will remain operational during the remaining ceasefire period. Additionally, he confirmed coordination through Iran’s maritime authorities.
The reopening follows a ceasefire-related easing of tensions in the Middle East. Market analysts said the move reduced fears of supply disruptions. Furthermore, the decision helped restore confidence in global shipping routes.
Read more: Iran warns over Strait of Hormuz control
Experts caution that price stability may depend on how long the arrangement continues. However, they note that any renewed conflict could quickly reverse the market trend. Energy markets are expected to remain sensitive to geopolitical developments.