New York, United States – Web Desk: Global oil prices fell sharply while equity markets rallied after reports that Iran had opened the Strait of Hormuz for commercial shipping during a temporary ceasefire period, easing fears of supply disruption.
According to international media reports, Brent crude declined by around 11% to approximately $88.70 per barrel, while US West Texas Intermediate (WTI) also dropped about 11% to $81.20.
Earlier, oil benchmarks had traded higher amid geopolitical uncertainty, with Brent hovering around $94–98 and WTI near $90–93 in Asian and global trading sessions.
The sharp reversal came after Iran’s Foreign Minister Abbas Araghchi announced that commercial vessels of all countries would be allowed safe passage through the Strait of Hormuz during the remaining days of the ceasefire, a critical waterway for global oil shipments.
The development eased concerns over potential disruptions in energy supply, triggering a strong reaction in financial markets.
US stock futures rose significantly following the announcement, with Dow Jones futures up by around 560 points. Futures for the S&P 500 and Nasdaq also recorded notable gains, reflecting improved investor sentiment.
Analysts say the move highlights how geopolitical developments in the Middle East continue to directly influence global energy markets and investor confidence.
