Strait Of Hormuz Now Open To Commercial Ships – Iran

Oil prices have plummeted after Iran said the Strait of Hormuz would be “completely open” to commercial ships for the remainder of the ceasefire.

The cost of a barrel of Brent crude fell to $88 dollars a barrel, having been above $98 earlier yesterday.

The Strait of Hormuz is a narrow strip of water linking the Gulf to the Arabian sea through which a fifth of the world’s oil and liquified natural gas is typically transported.

US President Donald Trump welcomed Iran’s statement, but maritime groups are still verifying the Iranian announcement.

Iranian Foreign Minister Abbas Araghchi said: “The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire.”

Global markets rallied on the announcement, with the major US stock indices rising in early trading. The S&P 500 rose by 0.8%, while the Nasdaq and Dow Jones Industrial Average (DJIA) were both up by more than 1%.

European shares also rose in reaction to the news. The Cac index in Paris and Dax in Frankfurt both climbed by more than 2%, while London’s FTSE 100 rose by around 0.5%.

The Strait of Hormuz had been effectively shut by Iran since the US and Israel launched military strikes in the country in late February.