News Desk: Oil prices plunged sharply on Friday while global equity markets surged after Iran announced the reopening of the vital Strait of Hormuz, easing fears of a prolonged disruption to global energy supplies.
Iran said the strategic waterway would remain open to all commercial shipping for the duration of the ongoing ceasefire, signaling a temporary de-escalation in regional tensions. Iranian Foreign Minister Abbas Araghchi stated that the move aligns with coordinated maritime arrangements during the truce period.
The development triggered a steep correction in crude markets. US benchmark oil dropped more than 13% to around $79 per barrel, while Brent crude fell over 13% to near $86, retreating sharply from recent highs driven by geopolitical tensions.
Oil and gas prices plunged early Friday after Iran said the Strait of Hormuz is now completely open to traffic, but Mia Gindis says it may take some time for tanker traffic to bounce back https://t.co/E5pRJiyd5j pic.twitter.com/Q6lgR5Leg5
— Bloomberg TV (@BloombergTV) April 17, 2026
The Strait of Hormuz, a critical artery for global energy trade that carries nearly one-fifth of the world’s oil supply, had faced disruptions during the recent conflict, pushing crude prices close to $120 per barrel and raising concerns of a wider economic fallout.
With supply fears easing, investor sentiment improved significantly. Global markets rallied, with Wall Street extending its upward momentum. The S&P 500 rose 1.4%, the Dow Jones Industrial Average jumped over 1,000 points, and the Nasdaq Composite gained 1.6%, reflecting renewed confidence among investors.
Market gains have now extended over recent weeks on expectations that tensions between the US and Iran may not escalate further. The reopening of the Strait is being viewed as a key signal of stabilizing risks, even if the situation remains fragile.
Meanwhile, US President Donald Trump said the conflict could be nearing its end, but maintained that the US naval blockade on Iran would continue until a broader agreement is reached.
While the reopening offers immediate relief to global markets, analysts caution that the situation remains fluid, with long-term stability dependent on sustained diplomatic progress.
