Oil prices dropped below $90 a barrel on Friday after Iran said the Strait of Hormuz was open to commercial vessels, easing market fears over one of the world’s most important energy shipping routes. Reuters reported that oil and the dollar fell sharply, while stocks and bonds rose after Iran’s foreign minister said passage through the strait was “completely open” for the remaining period of the ceasefire in Lebanon.
The announcement brought immediate relief to global energy markets. The Guardian reported that Brent crude fell more than 10% to about $88.80 a barrel, down sharply from a recent peak of around $119, while European gas prices also declined as traders hoped the disruption to energy flows could begin to ease.
Iranian Foreign Minister Abbas Araghchi said the waterway would remain open for all commercial vessels during the ceasefire period. The Strait of Hormuz is a critical route for global oil and gas shipments, and weeks of tension had raised fears that a prolonged closure could keep prices elevated and worsen inflation pressures.
The market rally also came as President Donald Trump said the United States was close to a deal to end the war with Iran. Reuters reported that Wall Street indexes climbed to record highs and US Treasuries surged as investors reacted to the possibility of reduced regional risk.
Still, analysts warned that the relief may be temporary. Reports said shipping through the strait may still require coordination with Iranian authorities, while uncertainty remains over how long the ceasefire will hold and how quickly stranded tankers can resume normal movement.
