Global Oil Prices Drop as Iran Reopens Strait of Hormuz

On Friday, global oil prices experienced a significant decline as Iran declared that the Strait of Hormuz was fully reopened for commercial shipping amid an ongoing ceasefire. Brent crude oil prices fell to $88 per barrel, down from $98 earlier in the day, as the market reacted positively to the news, anticipating improved supply conditions.

Iranian Foreign Minister Abba Araghchi confirmed that commercial vessels would be allowed to pass through the Strait during the ceasefire, which is a critical passage for global energy supply, accounting for about one-fifth of the world's oil. The reopening comes after a period of military tension involving the United States and Israel, which had significantly reduced tanker movement and driven oil prices up to over $119 in March.

U.S. President Donald Trump welcomed the move but insisted that restrictions on Iranian ports would remain until a broader agreement is reached.