Oil Prices Plunge 11% as Strait of Hormuz Reopens

Global oil prices tumbled sharply on Friday, falling by more than 11% after Iran announced the full reopening of the Strait of Hormuz to commercial shipping, easing concerns over supply disruptions in one of the world’s most critical oil transit routes.

Iranian Foreign Minister Abbas Araghchi said the strategic waterway is now “fully open” to all commercial vessels for the remainder of the ceasefire period, signaling a significant de-escalation in regional tensions that had previously driven oil prices higher.

Brent crude futures for June delivery dropped by 11.07%, or roughly $11, to settle at $88.39 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude for May delivery fell 11.5%, or $10.89, to $83.80 per barrel, putting both benchmarks on track for steep weekly losses.

Latest Oil Prices:

WTI Crude • 83.80 -10.89 -11.50%

Brent Crude • 89.69 -9.70 -9.76%

Murban Crude • 90.38 -11.28 -11.10%

WTI Midland • 86.81 -11.68 -11.86%

Opec Basket • 104.8 +0.23 +0.22%

Indian Basket • 2 days 110.6 +0.11 +0.10%

Natural Gas • 2.695 +0.048 +1.81%

Gasoline • 2.991 -0.173 -5.46%

Heating Oil • 3.392 -0.441 -11.50%

The sharp decline reflects a rapid reassessment by markets, as traders moved to price out geopolitical risk premiums tied to potential disruptions in Gulf oil flows. The Strait of Hormuz, through which a significant share of global oil supply passes, has long been a focal point for market volatility during periods of heightened tension between Iran and Western powers.

Adding to the shift in sentiment, U.S. President Donald Trump said late Thursday that the conflict with Iran could be nearing an end, noting that Washington and Tehran are approaching a potential peace agreement.

The statements reinforced expectations of a sustained easing in geopolitical risks, further pressuring crude prices.