Oil Prices Plummet Below $91 Amid New Hormuz Crisis

Iran Reopens Strait of Hormuz, Closes It Again Amid US Blockade

The price of Brent crude oil has fallen by more than 9% to $90.38 a barrel, its lowest point in weeks, following Iran’s announcement that the Strait of Hormuz would be open for passage during a ceasefire in Lebanon. Iranian Foreign Minister Abbas Araghchi stated that the strait was “completely open” and would remain so for the duration of the 10-day ceasefire.

US President Donald Trump welcomed the announcement, saying the waterway was “ready for business and full passage.” However, he also stated that the US Navy’s blockade of Iranian ports would remain in place until a peace deal is reached. On Saturday, Iran reversed its decision to reopen the strait, warning that it would continue to block transit through the key waterway as long as the US blockade of Iranian ports remained in effect.

The Strait of Hormuz is a critical waterway for global oil supplies, with roughly one-fifth of the world’s oil passing through it. The announcement has sparked concerns about further limits on supply, which could drive prices higher. Ship tracking data shows an increase in vessels crossing the strait, with analysts noting that traffic has remained at a trickle compared to pre-conflict levels.

Pakistani officials are seeking more talks between the US and Iran ahead of the April 22 ceasefire deadline. The near-total closure of the strait has triggered one of the worst energy shocks in history, prompting governments to implement emergency measures. Oil prices have fluctuated significantly since the US and Israel launched strikes on Iran on February 28, reaching a post-conflict peak of $119 a barrel on March 19.

Source: Al Jazeera