DILI, 18 April 2026 (TATOLI) – Oil prices have dropped sharply after Iran announced that the Strait of Hormuz would remain completely open to commercial shipping for the duration of the ceasefire with the US.
According to NBC News, U.S. crude oil plunged 11.4% to $83.85 per barrel, its lowest level since March 10, while international Brent crude fell 9% to $90.38 per barrel.
Before the US–Iran war, Brent crude traded below $70 a barrel. It climbed above $100 as tensions escalated, before reaching a peak of $119 per barrel last month.
The announcement came during the ceasefire between Israel and Lebanon, raising hopes that the major supply disruption will ease.
“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, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran,” Iran’s Foreign Minister Abbas Araghchi wrote in a post on X early Friday, NBC News reported.
Iran’s decision to reopen the Strait of Hormuz triggered a rapid drop in oil prices, but President Trump’s blockade on Iranian ports remains unchanged.
Trump welcomed the move on Friday in a Truth Social post, thanking Iran for reopening the strait, but later said: “The Naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete.”
Trump also announced that Iran had agreed to “never close the Strait of Hormuz again”. He added that the Strait of Hormuz would no longer be used as a “weapon against the World!”
Since the US and Israel launched military strikes on 28 February, Iran has effectively shut the Strait of Hormuz.
As no official announcement has been made on a second round of US–Iran talks, Trump said on Thursday he could travel to Pakistan to sign an agreement if a peace deal is reached.
TATOLI
