economy
Oil price drops below $90 a barrel after Iran says Strait of Hormuz is open
Gas price also falls and markets rise amid hopes Donald Trump will succeed in reaching deal with Tehran
TL;DR
- Oil and gas prices fell significantly after Iran stated the Strait of Hormuz was open.
- Brent crude dropped over 10% to $88.8 a barrel, and European gas contracts decreased by about 6.4%.
- Stock markets rose on both sides of the Atlantic following the announcement.
- The International Energy Agency described the disruption to Middle Eastern crude and gas supplies as the biggest energy supply crisis in history.
- Despite the announcement, questions persist about the ceasefire's longevity, shipping companies' willingness to transit, and potential passage fees.
- Iran's foreign minister indicated tankers must follow a specific route and may be required to pay a fee for safe passage.