economy
U.S. oil price plunges below $84 as Iran declares Strait of Hormuz open, easing supply fears
Oil prices tumbled more than 11% after Iran declared the Strait of Hormuz open amid a ceasefire deal with Lebanon.
TL;DR
- Oil prices plunged Friday after Iran declared the Strait of Hormuz open.
- U.S. crude oil futures fell nearly 12% to $83.85 per barrel.
- International benchmark Brent crude futures lost 9% to settle at $90.38 per barrel.
- The comments followed a ceasefire between Israel and Lebanon, which has hampered U.S.-Iran negotiations.
- President Trump expressed optimism about an end to the war with Iran and thanked Iran for opening the strait.
- A U.S. naval blockade of Iran's ports will remain in place until a deal is reached.
- Analysts warn that peace talks between the U.S. and Iran could break down, posing an upside risk to oil prices.
- ING estimates roughly 13 million barrels per day of supply has been disrupted due to the conflict and potential blockade.