Global oil prices tumbled on Friday after Abbas Araghchi signalled that the Strait of Hormuz would remain open to commercial shipping during a temporary Middle East ceasefire.
Benchmark crude dropped sharply, with West Texas Intermediate falling below $85 per barrel and Brent crude sliding to about $89.
The 10-day truce, involving Iran, Israel, and Hezbollah, has eased fears of supply disruptions. Oil prices had surged above $100 in recent weeks amid escalating tensions.
Analysts say the reopening of the vital shipping route, responsible for about one-fifth of global oil flows, has reduced pressure on energy markets. However, shipping firms remain cautious due to ongoing security concerns, including potential sea mines and operational risks.
Tags: Oil Prices, Strait of Hormuz, Iran, Israel, Middle East, Global Economy, Energy Market, Brent Crude, WTI, Ceasefire
