Global oil prices fell sharply on Friday, April 17, after Iran announced that the Strait of Hormuz would be “completely open” for commercial transit during the remaining days of the ceasefire deal between Iran and the United States.
This was disclosed by Iranian Foreign Minister Seyed Abbas Araghchi in a statement shared on X.
Checks by Naijaonpoint showed that Brent crude fell by 11.64% to $87.75 per barrel, while West Texas Intermediate (WTI) dropped by 11.55% to $83.4 per barrel, at the time of reporting. This marks the lowest level oil prices have traded in the last five weeks.
The Iranian government stated that the decision aligns with ongoing ceasefire efforts, declaring full access to one of the world’s most critical oil transit routes.
U.S. President Donald Trump, in his response on Truth Social, however, stated that the blockade by the U.S. Navy in the strait would remain in place to restrict Iranian oil shipments.
On April 12, President Trump ordered the United States Navy to begin a blockade of all ships entering or leaving the Strait of Hormuz.
The order came hours after peace talks between the United States and Iran collapsed in Islamabad, according to a press briefing by U.S. Vice President JD Vance, who confirmed that both sides failed to reach an agreement on key issues.
Prior to the U.S. blockade, Iran had also restricted access to the strait, a crucial waterway through which about 20% of the world’s oil supply passes.
A second round of talks between Iran and the United States is expected this weekend, although a specific date has not yet been fixed.
The impact has extended to economies like Nigeria, where petrol prices have risen sharply from around N799 per litre before the conflict to over N1,200 per litre.
