Iran Reopens Hormuz, Triggering 16% Oil Price Drop
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- Iran announced a two‑week safe‑passage agreement for ships through the Strait of Hormuz, reopening a route that carries roughly 20% of global oil trade.
- Donald Trump said he would suspend bombing and attacks on Iran for two weeks if Tehran guarantees a “complete, immediate, and safe” reopening of the strait.
- West Texas Intermediate crude fell 16.56% to $96.39 per barrel after the ceasefire announcement.
- Brent crude dropped 15.89% to $93.38 in the same trading session.
- Japan’s Nikkei 225 rose 4.38% to 55,771.56 points, while South Korea’s Kospi surged 5.71% to 5,808.65, indicating a rally in Asian risk assets.
- Pakistan’s Prime Minister Shehbaz Sharif urged Trump to extend the deadline for Iran to lift its Gulf oil blockade and appealed to Iran to keep the strait open for the two‑week period.
- Israel agreed, per a senior White House official, to suspend its bombing campaign while negotiations continue.
Why it matters: The 16% plunge in West Texas Intermediate and 15% drop in Brent cut fuel costs for oil‑importing nations and boosted Asian equity markets, while the two‑week truce provides a fleeting diplomatic pause that does not resolve the underlying war, leaving regional security uncertain.
