Global oil prices plummeted by approximately 9% after Iran announced the opening of the Strait of Hormuz for commercial shipping. Reuters reports this, writes UNN.
Details
Brent crude futures fell by $9.01 to $90.38 per barrel, dropping to $86.09 during the session. US West Texas Intermediate crude fell by $10.48 to $83.85 per barrel, with a low of $80.56.
This was the largest one-day price drop since early April.
Reason - opening of the strait
Iran stated that it allows all commercial vessels to pass through the Strait of Hormuz until the ceasefire expires. According to US President Donald Trump, Tehran has also agreed not to block this strategic route anymore.
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At the same time, an Iranian official noted that the transit of vessels must be coordinated with the Islamic Revolutionary Guard Corps.
Market removes "risk premium"
Analysts note that the fall in prices is due to a decrease in geopolitical tensions.
The market is quickly removing the excessive risk premium accumulated over the past two weeks and returning to assessing real supply flows
According to vessel tracking data, at least 20 tankers are already moving from the Persian Gulf through the Strait of Hormuz.