Iran’s announcement on opening of Strait of Hormuz sends oil prices tumbling
Photo: oil tanker (Getty Images)
Global energy prices dropped noticeably after Iran announced the opening of the Strait of Hormuz, according to Bloomberg.
Oil prices dropped sharply
Brent crude fell below $90 per barrel, effectively erasing the gains recorded earlier this week.
At the same time, US crude WTI also declined, moving closer to the $85 mark.
What Iran said
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route," Araghchi wrote on Twitter (X).
Market and gas reaction
Following this statement, European natural gas prices also fell, with quotations dropping by nearly 10%, approaching around €38 per megawatt-hour.
Market participants interpreted these signals as a potential reduction in supply risks for energy resources through this key shipping route.
Context and expectations
Investor optimism strengthened amid expectations of easing tensions. The conflict had previously significantly affected supply flows, as oil transit through the Strait of Hormuz was restricted, impacting a substantial share of the global market.
Additional downward pressure on prices came from reports of possible talks between the United States and Iran, as well as discussions about unfreezing part of the Iranian assets.
Analysts note that the current dynamics are driven by a reassessment of risks: the market is pricing in a scenario of stabilization and gradual restoration of supply, although the full reopening of routes remains uncertain.
Even in the event of the Strait of Hormuz being reopened, fuel prices may not return to previous levels, as market participants — concerned about renewed disruptions — may purchase oil in larger volumes as a precaution, increasing their costs.
The European aviation sector is facing the risk of a severe crisis due to a sharp shortage of jet fuel, which emerged amid the US and Israel’s military actions against Iran, which have effectively disrupted key energy supply routes.
