U.S. oil price plunges below $84 as Iran declares Strait of Hormuz open, easing supply fears

Oil prices plunged Friday after Iran’s foreign minister declared the Strait of Hormuz “completely open” during the ceasefire between Israel and Lebanon, raising hopes the huge supply disruption will ease.

Foreign Minister Seyed Abbas Araghchi’s comments on X followed remarks by U.S. President Donald Trump, who said late Thursday that the war with Iran, which began on Feb. 28, “should be ending pretty soon.”

U.S. crude oil futures for May delivery fell nearly 12% to close at $83.85 per barrel. International benchmark Brent for June delivery was down more than 8% to $90.93 per barrel.

In the social media post, Araghchi said vessels traveling through the critical waterway must sail a “coordinated route” prescribed by Iran’s maritime authorities.

Trump responded Friday in a Truth Social post by thanking Iran for opening the strait. He said, however, in a second social media post that a U.S. naval blockade of Iran’s ports will remain in “FULL FORCE” until the U.S. reaches a deal with Iran.

Israel and Lebanon agreed Thursday to a 10-day ceasefire that started at at 5 p.m. ET that evening. Israel has been striking Lebanon in a military campaign against Hezbollah, a militant group that is allied with Iran. The conflict between the groups has hampered U.S. negotiations with Iran.

Trump said in a Truth Social post that Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun would be invited to the White House for what he described as the first meaningful talks between the two countries since 1983.