Strait of Hormuz Fully Open, International Oil Prices Sharply Drop

On April 17, Iranian Foreign Minister Abbas Araqchi announced the Strait of Hormuz was "fully open"—sparking immediate market expectations of recovering oil supplies and sending international oil prices sharply lower. Market data shows U.S. benchmark WTI crude plummeted more than 9% to roughly $84 a barrel intraday, while Brent crude fell below $90, dropping over 8% and erasing nearly all its weekly gains. European natural gas prices also declined simultaneously. Former President Donald Trump later confirmed the news in a tweet, stating Iran is ready to resume full passage through the strait. Markets also got a boost from potential progress on a deal: Earlier reports indicated the U.S. is considering unfreezing around $20 billion in Iranian assets in exchange for nuclear-related concessions, with both sides possibly restarting negotiations this weekend. During the recent conflict, the strait’s closure disrupted roughly 20% of global oil shipments, triggering drastic oil price swings. Analysts note the market’s trading logic has shifted from "supply shock" to "repair expectations," with the oil price drop reflecting a repricing of easing tensions. Uncertainties remain, however. Factors like longer-than-expected energy infrastructure repair timelines and Iran’s potential to impose fees on passing vessels could disrupt oil prices. The industry expects global energy supply to recover gradually even if the conflict ends. Overall, the crude oil market is moving from extreme panic to phased stability, but geopolitical risks have not been fully eliminated.