Oil Prices Plunge on Iran's Decision to Allow Passage Through Strait of Hormuz

International oil prices have sharply declined after Iran announced it would temporarily allow vessel traffic through the Strait of Hormuz, a vital global energy transit route. Brent crude futures fell 10.2% on the 17th (local time), while West Texas Intermediate (WTI) futures dropped 11.3%.

Major U.S. stock indices closed higher on the 17th (local time) following the news of the Strait of Hormuz opening. The Dow Jones Industrial Average ended up 868.71 points (1.79%) at 49,447.43. The S&P 500 rose 84.78 points (1.20%) to close at 7,126.06. The Nasdaq Composite gained 365.78 points (1.52%) to finish at 24,468.48.

Iranian Foreign Minister Abbas Araghchi stated that with the announcement of a ceasefire in Lebanon, all merchant vessels passing through the Strait of Hormuz would be granted full passage during the ceasefire period. U.S. President Donald Trump commented that he was very close to a peace negotiation with Iran.