LONDON: Global oil prices tumbled by more than 10 percent on Friday, triggering a surge in stock markets, after Iran announced that the Strait of Hormuz would remain fully open to commercial shipping for the duration of its ceasefire with the United States, easing fears of prolonged supply disruptions.
Iran’s top diplomat had earlier stated that the decision was aligned with the ceasefire framework linked to regional developments, particularly in Lebanon.
Seyed Abbas Araghchi said the passage for all commercial vessels through the Strait of Hormuz was now “completely open” for the duration of the ceasefire, with ships required to follow routes coordinated by Iran’s Ports and Maritime Organisation.
In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.
— Seyed Abbas Araghchi (@araghchi) April 17, 2026
US President Donald Trump also welcomed Iran’s decision to reopen the Strait of Hormuz, shortly after Iranian Foreign Minister Seyed Abbas Araghchi formally confirmed the move as part of an ongoing ceasefire arrangement.
Taking to his Truth Social account, Trump wrote in a brief post: “IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!” He later elaborated that the Strait of Hormuz was “completely open and ready for business and full passage,” reinforcing his earlier remarks.
“IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!” – President Donald J. Trump 🇺🇸 pic.twitter.com/xDQpCj8APe
— The White House (@WhiteHouse) April 17, 2026
The Strait of Hormuz, a critical global energy chokepoint through which nearly one-fifth of the world’s crude oil flows, had faced severe disruptions amid escalating tensions during the US-Israeli offensive on Iran.
The unrest triggered significant supply concerns, pushing oil prices to near $120 per barrel and raising fears of wider shocks to the global economy.
Both the benchmark international contract, Brent, and its US equivalent WTI, fell below $90 per barrel.
“This news is having an immediate impact on markets,” said Kathleen Brooks, research director at XTB.
Wall Street’s major stock indices opened sharply higher, with both the S&P 500 and the Nasdaq Composite extending gains after reaching record highs in the previous session.
“This is the biggest development so far during the ceasefire, and it gives hope that the war will end soon, and supply chains will return to some normality,” Brooks said.
European equities traded higher in afternoon sessions, with Frankfurt and Paris both advancing around two percent.
In contrast, Asian markets mostly ended lower, with Tokyo among the steepest decliners after hitting a record high on Thursday, while Taiwan’s TAIEX index also fell following its recent surge to a market capitalisation of $4.14 trillion.
The milestone briefly positioned the TAIEX ahead of London’s FTSE 100, making it the world’s seventh-largest index by market value, according to Bloomberg data.
