Oil tumbles 10% as Iran declares strait of Hormuz ‘completely open’ – business live
Summary
Oil prices dropped by 10% after Iran said the Strait of Hormuz is fully open, following a ceasefire between Israel and Lebanon. This reopening raised hopes that energy supplies would improve, leading to lower gas prices in the UK and a rise in U.S. stock markets.Key Facts
- Iran announced the Strait of Hormuz is completely open for commercial ships during the ceasefire period.
- Brent crude oil price fell below $90 per barrel, down 10%.
- Iran’s foreign minister said ships must follow a coordinated travel route set by Iran’s maritime authorities.
- President Donald Trump confirmed the strait’s reopening but said the U.S. naval blockade on Iranian ports remains until a peace deal is finalized.
- Talks between the U.S. and Iran include a possible agreement involving $20 billion in frozen funds and Iran reducing enriched uranium stockpiles.
- UK gas prices fell by nearly 8%, anticipating more deliveries from the Gulf region.
- U.S. stock markets rose, with the Dow Jones up by 578 points (1.2%) after the announcement.
- Oil company shares like BP and Shell dropped as the reopening could reduce their war-related profits.
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