Global Oil Prices Plummet Nearly 9% as Iran-US Tensions Ease

Kathmandu. International crude oil prices have fallen by nearly 9 percent following reports that tensions between Iran and the United States have eased, ensuring the Strait of Hormuz remains open for commercial shipping. The sharp decline follows a dramatic surge in prices driven by war risks, which have now cooled due to Iran's recent shift toward a softer policy.

Market relief emerged after Iran announced that the Strait of Hormuz would remain open to all commercial vessels for the remainder of the ceasefire period. Furthermore, investor uncertainty diminished after US President Donald Trump claimed that Iran had agreed never to close the waterway again. This directly impacted oil prices, with both Brent Crude and WTI recording their largest single-day drops since April 8 on Friday.

At the close of the market, Brent Crude prices fell by $9.01, or 9.07 percent, to settle at $90.38 per barrel. During trading, it had dipped as low as $86.09. Similarly, US West Texas Intermediate prices dropped by $10.48, or 11.45 percent, to settle at $83.85 per barrel.

According to Reuters, a senior Iranian official stated that all vessels could transit the Strait of Hormuz provided they coordinate with the Iranian Islamic Revolutionary Guard Corps. The official claimed that the agreement includes conditions for the release of frozen Iranian funds.

Analysts note that the risk premium added to oil prices over the past two weeks due to the threat of war is now rapidly dissipating. The market is shifting away from fears of potential disruption and returning to focus on actual supply and flow dynamics.

Ship tracking data indicates that approximately 20 large vessels are currently exiting the Gulf through the Strait of Hormuz, confirming that oil supply is becoming more stable.