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

Global oil prices experienced a dramatic collapse, plummeting more than 10 percent in under two hours of trading. 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 swift 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 development, U.S. Stock indices surged on hopes of de-escalation. The S&P 500 and Nasdaq both reached new all-time highs as investors welcomed the reduced geopolitical risk.

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 in 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. A temporary memorandum of understanding between Washington and Tehran is set to expire on April 22. Market traders anticipate that a full resolution to the conflict could be reached before the end of the month.

The reopening of the Strait of Hormuz removes a major threat to global energy security. Approximately one-fifth of the world's oil supply transits through this narrow passageway, making its status a critical factor for international markets.