Oil prices plunge after Iran opens Strait of Hormuz

Crude oil prices in the international market have fallen sharply since the announcement of opening the Strait of Hormuz to commercial shipping. Oil prices in the global market fell sharply after the announcement by Iran’s Foreign Minister on Friday (April 17).
A BBC report, citing market analysis, said that the price of Brent crude oil was above $98 per barrel at the beginning of the day, but fell below $90 after the announcement. Similarly, the price of light sweet crude on the US oil market index ‘Nymex’ also fell significantly.
Energy experts say that before the Iran and Israel-US tensions, the price of Brent crude oil in the international market was below $70 per barrel. But due to the conflict in early March, this price exceeded $100 and reached a record $119 at the end of the month. The opening of the sea route after a long period of tension has had a positive impact on the market and has raised hopes of normalizing supply. Iran has taken this decision mainly in the context of a 10-day ceasefire in Lebanon. Since the Strait of Hormuz is one of the world’s busiest oil transportation routes, the opening of this route is seen as a major relief for the global economy. Those concerned believe that if this trend continues, oil prices could become more stable.