Oil prices plummeted more than 10% on Friday following claims from both former President Donald Trump and Iran's foreign minister that the Strait of Hormuz is now open for transit. The critical waterway had been subject to an unprecedented throttling of energy shipments. The sharp decline reflects trader confidence that a major supply choke point could be easing.
This development is directly tied to progress in ceasefire negotiations, including a recent truce in Lebanon. The Strait of Hormuz is the world's most vital energy shipping lane, and any disruption there sends immediate shockwaves through global markets. Its potential reopening carries significant implications for global inflation and energy security.