-- North Sea crude prices shed as much as $7 per barrel, while Brent slid 13% near $86/bbl after Iran said the Strait of Hormuz would reopen, according to a Bloomberg analysis on Friday.
Key North Sea grades and US WTI Midland fell $5 to $7/bbl in a Platts pricing window run by S&P Global, reflecting a sharp shift in sentiment following the announcement, the analysis said.
WTI Midland weakened to a $10.40/bbl premium over Dated Brent, marking its lowest level this month and dropping more than 50% from its Apr. 14 peak, the analysis added.
The price drop followed comments from Iranian Foreign Minister Abbas Araghchi, who declared the strait fully open, easing fears about constrained global oil flows.
Despite the reopening signal, a US naval blockade remains in place, while Iranian media indicated transit could be halted again if the US blockade continues, the analysis said.
Brent futures fell about 13% after Araghchi's statement, underscoring how quickly geopolitical developments are reshaping expectations for supply availability.
North Sea crude had surged to record highs earlier in the month amid supply shortages tied to the strait's closure, though sentiment began turning as offers started exceeding bids in recent days.