Global oil prices fell sharply on Friday after Iran announced the reopening of the Strait of Hormuz to commercial shipping.
Brent crude, the global oil benchmark, dropped about 9
percent to $89.84 per barrel — the first time it has fallen below $90 in two
weeks.
The price decline marks the first time Brent has traded
below $90 since March 30, having previously hit around $88 per barrel on March
19.
U.S. West Texas Intermediate (WTI) crude also declined,
shedding 11 percent to $83.90 per barrel.
Abbas Araghchi, Iran’s foreign minister, announced that the
Strait of Hormuz had been fully reopened to commercial traffic in a post on X
on Friday, hours after a 10-day ceasefire between Israel and Lebanon took
effect.
However, Araghchi said vessels must transit through a
“coordinated route” designated by Iran’s maritime authorities and noted that
the arrangement would last only for the duration of the ceasefire.
Earlier in the week, the United States Central Command said
the blockade had been “fully implemented”.
United States President Donald Trump also said the U.S.
naval blockade would remain in place “until such time as our transaction with
Iran is 100% complete”.
Oil prices had surged in recent weeks amid tensions in the
Middle East, but the reopening of the critical shipping route has eased supply
concerns, triggering the latest decline.
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