Oil prices plunged by around 11% on Friday afternoon following an announcement from Iranian Foreign Minister Abbas Araghchi that the Strait of Hormuz has reopened to commercial shipping. This strategic waterway is a vital artery for global energy, carrying roughly a fifth of the world’s oil supply. During the conflict, Iran had almost entirely blocked the strait to oil and gas tankers, causing significant disruption and uncertainty in international markets.
The news of the reopening triggered an immediate sell-off, with the price of US crude falling nearly 12% to $83.30 a barrel. Brent crude also saw a sharp decline, dropping by more than 11% to $87.90 per barrel. These drops represent a significant shift as traders react to the sudden easing of supply concerns in the Middle East.
European gas prices followed suit, falling sharply as tensions eased. On the Amsterdam gas exchange, the price dropped by nearly 8% to just over €39 per megawatt-hour. While the market remains sensitive to geopolitical developments, the reopening of the strait is seen as a major step toward stabilising global energy costs.
@anp | NEWS BRAINPORT
