Global Oil Prices Plunge as Iran Declares Strait of Hormuz Open for Ceasefire

Brent crude hits $90 as Iran opens the Strait of Hormuz for a 10 day ceasefire. Read about President Trump's reaction and the ongoing maritime safety risks.

By: AXL Media

Published: Apr 18, 2026, 9:32 AM EDT

Source: Information for this report was sourced from BBC News

Market Volatility Eases Following Diplomatic Breakthrough

Oil prices experienced a dramatic correction on Friday after Iranian Foreign Minister Abbas Araghchi declared the Strait of Hormuz "completely open" for the duration of the current ceasefire. Brent crude, the international benchmark, tumbled from a Friday high of over $98 to settle near $90.38 a barrel, a decrease of approximately 9.1%. This shift marks a significant relief for global markets which had seen prices peak at $119 per barrel in March following the effective closure of the waterway during the US-Israel military conflict with Iran that began in late February.

Maritime Authorities Maintain High Alert for Navigational Risks

Despite the diplomatic announcement, the international shipping community has not yet fully resumed transits through the narrow corridor. BIMCO, a major international shipping association, has advised operators that the status of sea mines in the traffic separation scheme remains unclear. Jakob Larsen, BIMCO’s chief safety and security officer, noted that the waterway has not been declared safe for transit, suggesting that the "coordinated route" referenced by Iran near Larak Island still carries substantial risk. The International Maritime Organization is currently working to verify if the opening complies with established freedom of navigation standards.

Trump Administration Balances Relief with Continued Blockade

US President Donald Trump expressed gratitude for the reopening of the strait in a series of posts on Truth Social, claiming Iran has agreed to never use the waterway as a "weapon against the world" again. However, the President clarified that the US naval blockade on Iranian ports remains in full force and effect. This nuanced stance suggests that while global commercial traffic is being encouraged to resume, the "maximum pressure" campaign against Iranian state exports and nuclear enrichment sites remains a central pillar of the administration's strategy until a permanent "transaction" is finalized.