Oil Prices Plunge Over 10% After Iran Reopens Strait of Hormuz

Global oil prices collapsed by more than 10 percent in under two hours following a major geopolitical development. The sharp decline was triggered by an announcement from Iranian Foreign Minister Abbas Araqchi that the Strait of Hormuz is now "fully open" for commercial shipping during the current ceasefire period.

The market reaction was immediate and severe. Brent crude oil fell to $88 per barrel, marking a 10 percent drop. The American benchmark, West Texas Intermediate (WTI), saw an even steeper decline, tumbling 12 percent to $82 per barrel.

In a related move, U.S. Stock markets rallied on hopes of de-escalation. The S&P 500 and Nasdaq indices hit new all-time highs as investors welcomed the reduced risk to global energy supplies.

U.S. President Donald Trump welcomed Iran's decision but clarified that the American naval blockade of Iranian ports would remain in effect until a final peace agreement is signed. In a separate statement, Trump also announced a halt to continued Israeli bombardments of Lebanon, declaring "enough is enough!"

According to Iranian sources, vessels will be able to transit through the strategic waterway along agreed-upon routes under the supervision of the Islamic Revolutionary Guard Corps Navy. The temporary memorandum of understanding between Washington and Tehran is set to expire on April 22. Traders anticipate that a full resolution to the conflict could be reached before the end of the month.

The reopening of the strait removes a critical threat that had been hanging over global energy markets. Approximately 20 percent of the world's oil supply passes through the Strait of Hormuz, and its closure had posed a severe risk of triggering a widespread energy crisis.