Iran Officially Opens Strait of Hormuz, Oil Prices Plunge Immediately

REPUBLIKA.CO.ID, LONDON – Global oil prices plunged immediately after Iran announced that the Strait of Hormuz is fully open to commercial vessels for the remainder of the ceasefire period. Brent crude oil prices fell to $88 per barrel, down from above $98 on Friday (17/4/2026). The Strait of Hormuz is a narrow waterway connecting the Gulf to the Arabian Sea. Approximately one-fifth of the world’s oil and liquefied natural gas supplies are typically transported through this route. “The shipping lane for all commercial vessels through the Strait of Hormuz is declared fully open during the remaining ceasefire period,” said Iranian Foreign Minister Abbas Araghchi, quoted from the BBC, on Friday (17/4/2026). Global markets also responded positively to the announcement. Major US stock indices strengthened in early trading. The S&P 500 rose 0.8 percent, while the Nasdaq and Dow Jones Industrial Average (DJIA) each increased by more than 1 percent. European stock exchanges also recorded gains. The CAC index in Paris and the DAX in Frankfurt rose by more than 2 percent, while the FTSE 100 in London strengthened by around 0.5 percent. Previously, the Strait of Hormuz had been practically closed by Iran since the United States and Israel launched military strikes at the end of February. Tanker ships could not pass through the route, causing a drastic reduction in oil and gas supplies in the global market and triggering a surge in prices.