Oil prices fall 9 percent as Iran opens Strait of Hormuz
Oil prices fell nearly 10 percent on Friday after Iran said the Strait of Hormuz is open for shipping. Brent crude dropped to 91 dollars while WTI fell to 86.
Global energy markets witnessed a sharp correction on Friday as crude prices tumbled by nearly 10%, erasing recent gains. The sell-off followed an announcement from the foreign ministry of Iran stating that the Strait of Hormuz would remain open to all commercial vessels. This policy is set to remain in effect for the duration of the current ceasefire, mirroring the diplomatic situation in Lebanon. Brent Crude Oil futures dropped $8.46, or 8.5%, to $90.93 per barrel by 1300 GMT. In the United States, the benchmark West Texas Oil futures fell $8.87, or 9.4%, to $85.82 per barrel. The assurance of safe passage through the vital maritime corridor significantly reduced the geopolitical risk premium that had previously bolstered energy prices.
