Oil prices plunge globally after Iran announces reopening of Strait of Hormuz

Global oil prices have fallen sharply following Iran's announcement that the Strait of Hormuz would remain open to all commercial vessels.

According to Reuters, international oil prices dropped by nearly 11 per cent within minutes of the announcement.

At 1:40 pm GMT on Friday, April 17, the international benchmark Brent crude fell by $10.59 per barrel to $87.71. At the same time, the US benchmark West Texas Intermediate (WTI) crude fell by $10.80 per barrel to $83.89. In both cases, prices reached their lowest levels since March 11.

Analysts believe the market reaction followed indications of reduced tensions in the Strait of Hormuz. Giovanni Staunovo said the market's focus now is on whether the situation could stabilise further if the ceasefire holds.

With concerns easing over the security of the Strait of Hormuz, one of the world's most important fuel transit routes, investors now perceive less risk, leading to this rapid decline in oil prices.