-- Oil prices plunged Friday as Iran's foreign minister said the Strait of Hormuz is "completely open" following a ceasefire in Lebanon.
West Texas Intermediate crude oil tumbled nearly 13% at $82.54 per barrel, while Brent sank 11% to $88.24. Energy prices have surged as the Middle East conflict disrupted shipments through the Strait of Hormuz, the world's most important chokepoint for crude flows.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Iranian Foreign Minister Seyed Abbas Araghchi said Friday in a post on the X platform.
Vessels must move through a "coordinated route" announced by Iran's Ports and Maritime Organization, Araghchi said.
"Markets are hailing the move as a step towards the prospect of a broader peace deal," Stifel Chief Economist Lindsey Piegza said in a note.
US President Donald Trump said Thursday that Lebanon and Israel agreed to a 10-day ceasefire, which seeks to pause hostilities between Israel and Iran-backed Hezbollah in Lebanon. That was a key sticking point in peace negotiations between Washington and Tehran.
Trump welcomed the reopening of the strait, though he said on Truth Social that the US naval blockade of Iran's ports will continue until "our transaction with Iran is 100% complete."
Trump has expressed optimism over the prospects of a deal with Iran ahead of the expiration of a two-week ceasefire between the two sides, according to media reports.