Oil prices experienced a significant drop on April 17, 2023, after Iranian officials declared the Strait of Hormuz would be fully accessible. By 16:30 Kyiv time, the price of Brent crude had fallen to below $89 per barrel, down from approximately $96 earlier in the day.
Iran’s Foreign Minister Abbas Araghchi announced that the strait would remain open for all commercial vessels throughout the duration of a ceasefire agreement between Lebanon and Israel. He stated, “According to the ceasefire in Lebanon, passage for all commercial ships through the Strait of Hormuz is declared fully open for the remaining period of the ceasefire along a coordinated route, as previously announced by the Ports and Maritime Organization of the Islamic Republic of Iran,” in a post on social media platform X.
This announcement was welcomed by U.S. President Donald Trump on his social media platform Truth.
The Strait of Hormuz is a crucial maritime route, through which approximately 20% of the world’s oil and liquefied natural gas is transported. The strait had been effectively closed due to U.S.-Israeli airstrikes on Iran that began on February 28, alongside Iranian retaliatory strikes on targets in the Middle East, including vessels in the Persian Gulf.
Following Iran's announcement of the full reopening of the Strait of Hormuz, oil prices have fallen significantly. The decision is linked to a ceasefire agreement between Lebanon and Israel, highlighting the strait's critical role in global oil transport.