Oil Prices Fall Below USD 87 As Iran Reopens Strait of Hormuz Amid Ceasefire
Oil prices fell below USD 87 per barrel after Iran announced the Strait of Hormuz would reopen for commercial shipping during the ceasefire. The move eased global supply concerns, boosted stock markets, and is expected to lower fuel and fertiliser costs worldwide.
Global oil prices dropped sharply after Iran announced that the Strait of Hormuz would be “completely open” to commercial shipping for the remainder of the ceasefire period. Brent crude fell below USD 87 per barrel, down from over USD 98 earlier in the day, signalling immediate relief for energy markets.
The Strait of Hormuz, a critical maritime route connecting the Persian Gulf to the Arabian Sea, handles nearly one-fifth of the world’s oil and liquefied natural gas shipments. Its closure in recent weeks, following military tensions involving the US and Israel, had severely disrupted global supply chains and pushed oil prices above USD 100, peaking at over USD 119 in March. Iran Declares Strait of Hormuz Completely Open for Commercial Ships Amid Ceasefire.
Iranian Foreign Minister Abbas Araghchi confirmed the development, stating, “The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire.”
The reopening has triggered a positive response across global financial markets. In the United States, the S&P 500 rose 0.8%, while the Nasdaq and Dow Jones Industrial Average gained over 1%. European markets followed suit, with major indices in Paris and Frankfurt climbing more than 2%, and London’s FTSE 100 also posting gains. US-Iran Crisis: Donald Trump Announces Strait of Hormuz Blockade, Says Tehran ‘Unyielding’ on Nuclear Issue.
Lower oil prices are expected to ease pressure on fuel costs, including petrol, diesel, and jet fuel, while also stabilising fertiliser supply chains that rely heavily on this key shipping route.
Reacting to the announcement, Donald Trump welcomed the move, saying the Strait is now “fully open and ready for full passage.” However, he added that a naval blockade on Iran would remain in place until a permanent agreement is reached.
The development marks a significant step toward stabilising global energy markets after weeks of volatility.
(The above story first appeared on LatestLY on Apr 17, 2026 08:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).