Oil prices recorded a sharp decline after Iran announced the opening of the Strait of Hormuz for all commercial shipping for a 10-day period, following a ceasefire between Lebanon and Israel.
The development fueled expectations that the United States and Iran may be moving closer to a potential agreement to end ongoing hostilities, triggering a strong sell-off in global crude markets.
At 1340 GMT, Brent crude futures dropped by $10.59 (10.7%) to $88.80 per barrel, after hitting an intraday low of $87.71. Meanwhile, West Texas Intermediate (WTI) crude futures fell by $10.80 (11.4%) to $83.89 per barrel, briefly touching $83 during the trading session.
Both benchmarks fell to their lowest levels since March 11, reflecting easing geopolitical risk premiums and improved expectations for global supply stability.
Market analysts say the reopening of the Strait of Hormuz signals improved global oil supply conditions, which has placed immediate downward pressure on prices.
Heating oil and gasoline prices also registered noticeable declines, while Murban crude slipped by around 1.5 percent.
On the other hand, natural gas prices showed a slight increase, reflecting mixed trends in the broader energy market.
Experts believe that if stability in the region continues, further declines in oil prices may be possible, although the outlook remains dependent on security conditions and the durability of the ceasefire.
Earlier, Iran has announced the reopening of the Strait of Hormuz for commercial vessels in the context of a ceasefire in Lebanon, allowing maritime trade to resume through one of the world’s most critical shipping routes.
Iranian Foreign Minister Abbas Araghchi stated in a post on social media platform X that the strait has been reopened for all commercial shipping and will remain fully operational during the remaining period of the ceasefire.
