Iran Reopens Strait of Hormuz as Oil Prices Plunge Amid Regional Ceasefire

Global energy markets reacted sharply on Friday as Iran declared the Strait of Hormuz open to commercial shipping. The announcement follows a 10-day ceasefire agreement between Israel and Lebanon, aimed at halting military operations against Hezbollah. The reopening comes after a period of severe disruption that Iranian officials claim was exacerbated by U.S. violations of previous agreements. While Foreign Minister Seyed Abbas Araghchi confirmed the passage is open, he noted that vessels must follow a "coordinated route" established by Iranian maritime authorities. It remains unclear if Tehran will implement tolls for transit. The news triggered an immediate sell-off in energy markets, with oil prices plunging more than 10% to drop below $90 per barrel. The Strait is a vital artery for global energy, historically facilitating the transit of approximately one-fifth of the world's crude oil supplies. Its recent closure had caused the most significant oil supply disruption in history. Despite the easing of the maritime chokepoint, geopolitical tensions remain high. President Donald Trump confirmed that the U.S. naval blockade of Iranian ports remains active until a formal agreement is reached with Tehran. Diplomatic efforts continue, with a second round of talks between U.S. and Iranian negotiators potentially taking place this weekend in Pakistan following a failed initial attempt last weekend.