04/17/2026April 17, 2026Oil prices drop by over 11% after Iran announces Hormuz reopening
Oil prices dropped by over 11% after Iranian Foreign Minister Abbas Araghchi said Tehran would reopen the Strait of Hormuz for the rest of its truce with the United States.
Brent crude oil, which serves as a global benchmark for prices, plunged by $11.12 to $88.27 a barrel at 1311 UTC.
Analysts have argued that markets are reacting to a sign of deescalation between the warring parties.
“Comments from Iran’s foreign minister indicate a deescalation as long as the ceasefire is in ‌place, now we need to see also if ‌the number of tankers crossing the Strait increases substantially,” Giovanni Staunovo, an analyst at Swiss financial giant UBS, was cited by Reuters news agency as saying.
Some 20% of global oil deliveries pass through the crucial waterway.
While a two-week US-Iran ceasefire went into effect on April 8, Tehran argued that Washington ally Israel’s continued offensive in Lebanon constituted a violation of the truce.
On Thursday, Israel reached a 10-day ceasefire deal with Lebanese militant group Hezbollah.
Trump threatens continued blockade
However, US President Donald Trump stressed that the United States’ naval blockade of Iranian ports would stay in force until Washington reaches a deal with Tehran in a social media post issued after Araghchi’s announcement.
“THE STRAIT OF HORMUZ IS COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE, BUT THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN, ONLY, UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE,” Trump said in the post on his Truth Social platform.
He said that the negotiation process would proceed swiftly and that Washington and Tehran had already agreed on most points in talks.
The United States and Iran engaged in talks on April 11-12 in Islamabad, Pakistan, which resulted in no apparent breakthrough.