Oil Prices Drop 12% After Iran Announces Hormuz Strait Will Remain Open

Oil prices fell approximately 12% following Tehran's announcement that the Hormuz Strait will remain open for the duration of the ceasefire. Markets responded positively to Iran's commitment to keep the strategic waterway accessible to shipping traffic. The Hormuz Strait is a critical chokepoint for global oil supplies, with roughly one-fifth of the world's petroleum passing through the narrow passage between Iran and Oman. Iran's assurance that it will not disrupt maritime traffic through the strait during the ongoing truce has eased concerns about potential supply disruptions that had been driving oil prices higher.