By Blessing Nweke
Oil prices plunged and global stock markets surged Friday after Iran signaled that the Strait of Hormuz was open to commercial shipping, easing fears of supply disruptions.
U.S. crude fell 11.4% to $83.85 per barrel, while Brent crude dropped 9% to $90.38, marking one of the steepest single-day declines since the conflict began. The move followed a statement by Iran’s foreign minister, Abbas Araghchi, who said passage through the strait would remain open during a ceasefire period.
The announcement sparked optimism in financial markets. The S&P 500 rose 1.2% to a record high, while the Nasdaq Composite gained 1.5%. The Dow Jones Industrial Average jumped 868 points, and the Russell 2000 climbed 2.1%, extending a third straight week of gains.
U.S. President Donald Trump welcomed the development but said a naval blockade targeting Iran would remain until negotiations conclude.
Energy analysts said the drop could soon translate into lower fuel prices. According to AAA, the U.S. average gasoline price stood at $4.09 per gallon Friday, but could fall further in the coming days.
European leaders reacted cautiously. EU foreign policy chief Kaja Kallas warned against any toll system, while Emmanuel Macron and Keir Starmer stressed the need for unrestricted access.
Shipping giants Maersk and Hapag-Lloyd said they remain cautious, citing unresolved security and insurance concerns before resuming transit.
Despite Friday’s drop, oil prices remain significantly higher than earlier this year.
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