Oil prices fall as Iran says Hormuz Strait will stay open for ceasefire period

Global oil and gas prices fell sharply after Abbas Araghchi said the Strait of Hormuz will remain open for commercial vessels for the duration of the ceasefire, easing fears of a prolonged supply shock.Brent crude dropped towards $90 per barrel, reversing recent gains, while US benchmark WTI slipped to around $85. European natural gas prices also fell nearly 10% as traders priced in improved supply conditions.

The Strait of Hormuz is a vital artery for global energy trade, carrying about a fifth of the world’s oil. Disruptions in recent weeks—amid escalating tensions involving the US and Iran—had choked flows and triggered a sharp spike in prices.
Araghchi’s clarification that shipping lanes will stay open during the ceasefire has shifted market sentiment from panic to cautious relief. The move comes alongside tentative diplomatic efforts, including expectations of fresh talks between Washington and Tehran.However, analysts warn the relief may be temporary. The reopening is tied to the ceasefire window, and underlying risks—from geopolitical tensions to damaged infrastructure—remain unresolved.

For now, markets are signalling stabilisation, but not a full return to normal.