As oil prices plunge below $91 after weeks, a new Hormuz crisis emerges
Summary
Oil prices dropped below $91 a barrel after Iran said the Strait of Hormuz was open during a ceasefire in Lebanon. However, Iran later warned it would keep blocking the strait as long as the US maintained its blockade on Iranian ports. The Strait of Hormuz is important because about one-fifth of the world’s oil passes through it.Key Facts
- Brent crude oil price fell more than 9% to $90.38 per barrel on Friday.
- Iran initially said the Strait of Hormuz was open during a 10-day ceasefire between Israel and Lebanon.
- President Donald Trump supported the reopening but said the US naval blockade on Iranian ports would continue.
- Iran later retracted the opening and warned it would keep blocking the strait if the US blockade remains.
- About 20% of the world’s oil passes through the Strait of Hormuz.
- Increased ship movements were seen at the strait after Iran’s first announcement.
- Oil prices had previously peaked at $119 per barrel after US and Israeli strikes on Iran in February.
- Pakistani officials are working to encourage more US-Iran talks before the April 22 ceasefire deadline.
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