Crude oil prices fell by about 10% on 17th April following an announcement by Iran that the Strait of Hormuz is “completely open” and a ceasefire between Israel and Lebanon.
The West Texas Intermediate – the benchmark for the U.S. – dropped $9.47 or 10.29% to $84.95, according to oilprice.com. Brent, the international standard, dropped $8.52, or 8.52%, to $90.87 a barrel.
American drivers also got a break at the bowser, with the average price of regular gasoline dropping to $4.08 per gallon on Friday from a peak of $4.17 on April 9, the highest price this year, according to AAA. Crude prices have a strong influence on gas prices, which are 51% crude.
Crude prices rose after the start of the Middle East war on Feb. 28, reaching as high as almost $120 a barrel. The price jumped because of reduced flow through the Strait of Hormuz, a major shipping lane for oil, through which a fifth of the world’s oil supply typically passes.
Oil prices dropped on Friday following a post on X by Iran’s foreign minister, Seyed Abbas Araghchi, saying, “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”
The U.S. is close to striking a deal with Iran, according to President Trump, who told CBS News on Friday that Iran has “agreed to everything,” and will help the U.S. take its enriched uranium out of the country. U.S. officials could be back in Pakistan for further talks with Iran in the coming days, sources said. But later, according to a statement released by the foreign ministry spokesman of Iran, the country has no intention to ship any uranium to the U.S. because it is “not an option”.
Mr Trump said the U.S. will maintain the blockade of Iran’s ports and ships “until we get it done,” meaning a deal with Iran. Since the blockade began early this week, 19 vessels have “complied with direction from U.S. forces to turn around and return to Iran”, the central command said.
The stock market rebounded on Friday on the prospect of an end to the Middle East war. The S&P 500 gained 85 points, or 1.2%, to close at 7,126, while the Dow Jones Industrial Average jumped 869 points, or 1.8%, to close at 49,447. The Nasdaq Composite, which is weighted heavily towards technology stocks, added 1.5%.
