Oil prices fell sharply right after Iran signalled that commercial shipping through the Strait of Hormuz would remain uninterrupted during the current ceasefire, easing concerns over global supply disruptions.
Brent crude, the international benchmark, dropped about 10% to around $89–$90 a barrel, while U.S. West Texas Intermediate (WTI) fell to roughly $81–$84.
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Iranian Foreign Minister Abbas Araghchi said in a post on X that all commercial vessels would be allowed to transit the strait for the remainder of the truce, in coordination with the country’s ports and maritime authorities.
“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,” he said.
The statement reassured markets over the status of one of the world’s most critical energy chokepoints, through which roughly a quarter of global seaborne oil passes.
Prices had already been under pressure earlier in the session on expectations of a potential Iran-U.S. diplomatic breakthrough.
