Oil prices plunged more than 10% on the 17th after Iran said it would temporarily lift restrictions on passage through the Strait of Hormuz to reflect the cease-fire between Israel and Lebanon.
As of 10:04 a.m. Eastern time on the same day, June Brent crude futures, the front-month contract on the ICE Futures Europe exchange, were trading at $88.2 a barrel, down $11.19 (11.26%) from the previous session. It is the first time in about a month since Mar. 11 that Brent has fallen below $90 a barrel.
At the same time on the New York Mercantile Exchange (NYMEX), June West Texas Intermediate (WTI) futures were trading at $81.21, down $9.96 (10.92%) from the previous session.
The plunge followed Iran's announcement that it would fully allow merchant vessel traffic through the Strait of Hormuz. Iran Foreign Minister Abbas Araghchi said on X that "to reflect the Lebanon cease-fire, all merchant ships will be fully allowed to transit the Strait of Hormuz for the remainder of the cease-fire period."
Earlier, Israel and Lebanon agreed to a 10-day cease-fire through U.S. mediation.
Since the outbreak of the U.S.-Iran war, global oil prices have surged as Iran sealed off the Strait of Hormuz. The Strait of Hormuz is a key route that carries about 20% of the world's seaborne crude shipments.