Global oil prices fell sharply on Friday after U.S. President Donald Trump announced the lifting of the naval blockade in the Strait of Hormuz, a move that fueled market optimism over a potential breakthrough in the ongoing geopolitical crisis and the restoration of disrupted energy supplies.
U.S. West Texas Intermediate (WTI) crude dropped more than 2% to settle at $86.73 per barrel, while Brent crude, the international benchmark, declined by a similar margin to $91.61 per barrel.
Latest Oil Prices:
WTI Crude $86.89 -2.01 -2.26%
Brent Crude $91.94 -1.77 -1.89%
Murban Crude $92.50 -1.59 -1.69%
WTI Midland $87.73 -2.29 -2.54%
Opec Basket $105.8 +0.95 +0.91%
Indian Basket $97.52 -4.53 -4.44%
Natural Gas $3.324 +0.039 +1.19%
Gasoline $3.098 -0.088 -2.75%
Heating Oil $3.536 -0.083 -2.29%
The latest losses extend a broader downward trend in oil markets, with crude prices now down more than 17% over the course of the month amid growing expectations of a possible diplomatic agreement between Washington and Tehran.
The decline followed a statement posted by Trump on his Truth Social platform, where he confirmed the beginning of efforts to lift the maritime blockade and allow vessels stranded in the strategic waterway to return to their destinations.
Trump also stated that Iran would oversee the immediate removal or detonation of any remaining naval mines in the shipping lanes, signaling a possible de-escalation in one of the world’s most sensitive energy transit corridors.
As part of the proposed arrangement, the U.S. president outlined a series of demands directed at Tehran, including a permanent commitment not to pursue nuclear weapons and the immediate reopening of the Strait of Hormuz to unrestricted international navigation in both directions without transit fees or limitations.
The Strait of Hormuz remains a critical artery for global energy markets, with roughly one-fifth of the world’s oil supply passing through the narrow maritime passage each day. Any disruption to shipping activity in the area typically triggers sharp volatility across global commodity markets.
The latest developments come after previous remarks by the U.S. Treasury Secretary, who claimed that the naval blockade had successfully reduced Iran’s seaborne oil exports to historically low levels. He reiterated Washington’s commitment to maintaining sanctions and economic pressure aimed at limiting Tehran’s financial resources.
Meanwhile, American officials revealed that negotiators had reached a draft memorandum of understanding establishing a 60-day framework intended to extend the current ceasefire and launch broader negotiations concerning Iran’s nuclear program.
The proposed agreement, however, still awaits final approval and signature from President Trump before formally entering into force.
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