Oil Prices Fall to $86 as Hormuz Reopens

Global oil prices fell sharply on Friday after the Strait of Hormuz was reopened to commercial shipping, easing fears of prolonged supply disruptions.

U.S. President Donald Trump confirmed the reopening in a post on Truth Social, while Iran’s Foreign Minister Abbas Araghchi announced that the corridor was “completely open” for the duration of the ceasefire.

“In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open,” Araghchi said on X.

Trump welcomed the move but clarified that U.S. naval restrictions on Iranian ports would remain until a broader agreement is reached.

The reopening triggered an immediate sell-off in oil markets. Benchmark crude prices dropped to around $86 per barrel, down nearly 10%, as traders priced out the geopolitical risk premium built up during weeks of tension.

The decline marked a reversal from earlier spikes above $100 per barrel, driven by fears of shortages after the waterway was closed in late February.

For Nigerians, the development offers some relief. Fuel prices had surged from ₦760 per litre at the start of the war to about ₦1,300, worsening living costs.

Analysts say the reopening could stabilise global supply in the short term, though risks remain as the ceasefire is set to expire on April 21.