After Iran announced the complete opening of the Strait of Hormuz, allowing oil tankers to pass and resuming their supplies to global markets, oil prices witnessed a noticeable decline of more than 10%.
Iranian Foreign Minister Abbas Araqchi stated that the Strait of Hormuz will remain open to all commercial ships throughout the duration of the ceasefire, in line with the ceasefire agreement in Lebanon, which led to a decline in oil prices on Friday by more than 10 percent.
In price details, Brent crude futures fell by $11.12, or 11.2 percent, to reach $88.27 per barrel by 1311 GMT. US West Texas Intermediate crude futures also fell by $11.40, or 12 percent, to $83.29 per barrel.
Giovanni Stanovo, an analyst at UBS, commented: “The Iranian Foreign Minister’s statements indicate calm as long as the ceasefire continues.” He added: “Now we also need to see whether the number of tankers crossing the strait will increase significantly.”
On the other hand, the Wall Street Stock Exchange continued to achieve strong gains, as the Standard & Poor’s 500 Index rose by 0.7, heading towards achieving the third consecutive week of gains, while the Dow Jones Industrial Average rose by 1%, and the Nasdaq Composite Index by about 1%.
Since late March, stocks have risen more than 11%, driven by hopes of avoiding a worst-case scenario for the global economy in light of tensions between the United States and Iran. This positive performance in the markets is due to the decline in concerns about the disruption of global energy supplies, which enhanced investors’ appetite for risk.
