U.S. oil prices plunge to around $80 a barrel after Iran declares Strait of Hormuz ‘completely open’ during cease-fire

Iran’s foreign minister declared the Strait of Hormuz “completely open” for commercial vessels during a cease-fire, triggering a sharp drop in global oil prices on Friday. U.S. West Texas Intermediate crude plummeted 10.5% to $80.64 per barrel, reversing earlier weekly highs above $105 as geopolitical tensions eased in the critical shipping route. Brent crude futures also fell 10.2% to $89.16 per barrel, reflecting reduced supply chain risks after Iran’s announcement lifted fears of regional oil transit disruptions. The price collapse follows days of volatility tied to conflict concerns, with Iran’s cease-fire move temporarily stabilizing markets and easing pressure on global energy flows. Analysts attribute the steep decline to restored confidence in oil shipments through the Strait, which handles roughly 20% of the world’s crude supply.