On Friday, oil prices plunged and U.S. stocks surged after Iranian Foreign Minister Seyed Abbas Araghchi said the Strait of Hormuz will be “completely open” for commercial traffic for the rest of the ceasefire.
Brent crude, the global benchmark, fell 11.2% to just below $88.25 per barrel, while WTI, the U.S. benchmark, sank 10.9% to $81.20 per barrel. Oil traded at a five-week low.
“In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire,” Araghchi wrote on X.
According to Arab media reports, WTI crude oil has become 12% cheaper after the announcement by the Iranian Foreign Minister.
According to media reports, WTI is at $83, while Brent has fallen by 11% to $88 per barrel.
UAE crude oil futures are down 8% at $93 per barrel.
On the other hand, European stock markets surged on the news of the opening of the Strait of Hormuz. European stock markets including Switzerland, France, Germany, the United Kingdom, and Spain saw a 1 percent increase.