Iran has announced that the Strait of Hormuz is now fully open for commercial traffic during the ongoing ceasefire between Israel and Lebanon. Foreign Minister Seyed Abbas Araghchi confirmed that vessels can transit through a designated route, a significant development given the strait’s critical role in global oil supply. This announcement comes as Israel and Lebanon agreed to a 10-day ceasefire, impacting regional stability and trade routes.

The reopening of the strait has already led to a notable decline in oil prices, which fell more than 10% to below $90 per barrel. Prior to the conflict, the strait was a key passage for about 20% of the world’s crude oil, and its near closure had previously caused major supply disruptions. The ongoing tensions between the U.S. and Iran, alongside military actions in Lebanon, continue to influence market perceptions and energy prices.

Market participants should closely monitor further developments in U.S.-Iran negotiations, as any resolution could significantly affect oil supply dynamics and pricing in the near term.

Source: cnbc.com