LONDON, April 17 – Global energy prices tumbled after Iran’s Foreign Minister Abbas Araghchi said the Strait of Hormuz “is declared completely open.” easing fears of a prolonged supply disruption.
Brent crude fell toward $90 per barrel, while U.S. benchmark West Texas Intermediate dropped to around $85. European natural gas prices also declined sharply, falling nearly 10% as markets reacted to the easing of geopolitical tensions.
The move followed comments by Abbas Araghchi, who said the strait is “completely open” for commercial shipping during the current ceasefire period. The announcement raised hopes that one of the most severe energy supply shocks in recent years may be nearing resolution.
The development comes amid broader diplomatic efforts, with Donald Trump indicating that concessions from Iran could pave the way for a longer-term agreement to end the conflict. Reports also suggest the U.S. is considering releasing billions in frozen Iranian funds as part of negotiations tied to nuclear commitments.
The conflict had severely disrupted global energy markets, with Iran previously restricting traffic through the Strait of Hormuz, a route that carries roughly a fifth of the world’s seaborne oil. Additional pressure came from U.S. naval actions in the region, further tightening supply.
While the reopening has improved sentiment, analysts caution that the situation remains fragile, with the current access potentially limited and dependent on the durability of the ceasefire.
Energy markets are now closely watching upcoming negotiations, which could determine whether the recent price declines are sustained or reversed.
