Brent plunges as Iran allows Strait of Hormuz transits

The Strait of Hormuz will remain open for commercial vessels while the ceasefire in Lebanon lasts, Iran’s foreign minister Seyed Abbas Araghchi said in an X post.

IMAGE: Strait of Hormuz. Getty Images

Front-month ICE Brent crude dropped from around $95/bbl to $88/bbl on the news.

Araghchi said ships will be allowed to pass on a co-ordinated route announced by the Ports and Maritime Organisation of the Islamic Republic of Iran.

On Thursday, Israel and Lebanon agreed to a US-backed ceasefire in fighting between Israel and Iran-backed Hezbollah for an initial duration of 10 days to enable peace negotiations between the two countries.

US President Donald Trump welcomed the opening of Hormuz in a post on Truth Social.

Trump said the US naval blockade of Iranian ports will remain in effect until US negotiations with Iran are “100% complete”.

“This process should move very quickly, as most of the points have already been negotiated,” Trump said in the post.

By Nachiket Tekawade

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