Oil prices plunged after Iran announced on Friday that the Strait of Hormuz would remain “fully open” to commercial vessels for as long as the ceasefire agreement between the United States and Israel remains in effect following weeks of bombardments.
Brent crude oil prices fell to $88 per barrel after climbing above $98 earlier on Friday.
The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Arabian Sea, through which nearly one-fifth of the world’s oil and liquefied natural gas supply flows.
U.S. President Donald Trump welcomed Iran’s announcement, although maritime authorities are still working to verify the declaration.
Iranian Foreign Minister Abbas Araghchi stated: “The passage of all commercial vessels through the Strait of Hormuz is declared fully open for the remainder of the ceasefire period.”
Global markets rebounded following the announcement.
“The passage of all commercial vessels through the Strait of Hormuz is declared fully open for the remainder of the ceasefire period,” said Iranian Foreign Minister Abbas Araghchi.
Global markets also responded positively to the announcement.
