Oil falls by over 11% after Iran FM declares Strait of Hormuz open

Oil prices plunged more than 10% on Friday, extending prior losses, after Iran’s foreign minister said commercial passage through the Strait of Hormuz remains open during the ceasefire period. The comment reduces immediate supply-disruption fears in a critical chokepoint for global crude flows. The move is likely to pressure energy producers and broader commodity markets, with high market-wide sensitivity given the geopolitical backdrop.

Analysis

Oil prices plunged more than 10% on Friday, extending prior losses, after Iran’s foreign minister said commercial passage through the Strait of Hormuz remains open during the ceasefire period. The comment reduces immediate supply-disruption fears in a critical chokepoint for global crude flows. The move is likely to pressure energy producers and broader commodity markets, with high market-wide sensitivity given the geopolitical backdrop.