Iran Says Strait of Hormuz Fully Reopened; Oil Prices Sink

Iran's Foreign Minister Abbas Araqchi said on April 17 that the Strait of Hormuz has been "fully reopened," quickly lifting expectations that crude flows will normalize and sending international oil prices sharply lower. Market data showed U.S. crude falling more than 9% intraday to about $84. Brent dropped below $90, down over 8% on the day and wiping out all gains made earlier this week. European natural gas prices also declined. Former U.S. President Donald Trump later posted to confirm the development, saying Iran is ready to return to full compliance. Sentiment was also supported by signs of possible progress toward an agreement. Earlier reports said Washington is considering unfreezing roughly $20 billion in Iranian assets in exchange for nuclear-related concessions, with talks potentially resuming over the weekend. During the latest escalation, disruptions in the Strait of Hormuz briefly affected about 20% of global oil transport, fueling pronounced volatility. Analysts said the market narrative has shifted from a "supply shock" to "recovery expectations," with the selloff reflecting a repricing for de-escalation. Risks remain. A prolonged repair cycle for energy infrastructure and the possibility that Iran could levy fees on transiting vessels may continue to add instability. Industry sources expect that even if the conflict ends, restoring global energy supply will take time. The crude market is moving from extreme panic toward near-term stability, but geopolitical uncertainty has not fully cleared.