Iran’s foreign minister Hossein Amir‑Abdollahian announced the Strait of Hormuz was "completely open" for commercial vessels, and global oil benchmarks slid sharply that afternoon.[1]

The plunge matters because Brent crude and West Texas Intermediate are priced in dollars worldwide; a double‑digit dip can shave billions off import bills and tighten fiscal balances in oil‑importing nations.[2]

Amir‑Abdollahian said the waterway would remain open for the remainder of the U.S.–Iran ceasefire, a statement that removed a key geopolitical risk premium from the market.[1] — The comment came as both sides signaled willingness to keep hostilities at bay.

Traders reported price drops ranging from roughly nine percent to thirteen percent, with the most widely cited figures at about ten percent.[2][3][4] Brent fell about ten percent, while WTI slid a similar amount, sending futures contracts into steep correction.

"Oil prices settled down by around nine percent on Friday, marking one of the largest single‑day declines for Brent and WTI," a CBC reporter said.[2]

"Oil prices plunged by about thirteen percent on Friday after Iran’s foreign minister said passage for all commercial vessels was restored," a BNN Bloomberg correspondent said.[3]

Analysts note that the Strait of Hormuz carries roughly 20% of global petroleum shipments; any perceived closure typically pushes prices higher. By confirming unrestricted flow, Tehran effectively eliminated a major supply‑risk factor, allowing traders to rebalance positions and push prices lower.[1]

**What this means**

The rapid price correction signals that markets are highly sensitive to geopolitical cues in the Gulf. With the Hormuz lane now declared open, oil‑importing economies may see short‑term relief on fuel costs, while producers could face tighter revenue forecasts. The episode also illustrates how diplomatic gestures, even brief, can reshape commodity markets in real time.

“"The Strait of Hormuz is completely open for the remainder of the ceasefire."”

The swift market response shows that geopolitical risk in the Gulf remains a dominant driver of oil pricing; a single policy announcement can erase a risk premium and trigger multi‑percent price swings, affecting everything from consumer gasoline costs to national budgets.