Oil prices plunge as US and Iran declare Strait of Hormuz open

Oil prices tumbled after Iranian officials said they would allow commercial traffic to resume in the Strait of Hormuz, with stock markets in the US reaching record highs.

Traffic in the strategic waterway, through which one-fifth of the world’s crude oil normally flows, has been disrupted by Iran since the US-Israeli offensive began on February 28.

Both Brent crude and US oil prices fell below $90 per barrel following Tehran’s announcement. Brent finished at $90.38 a barrel, down 9.1 percent.

The announcement sent US stock markets even higher, with the S&P 500 closing above 7,100 points for the first time.

Israel’s genocide in Gaza: In numbers

• US President Donald Trump has repeatedly stressed that the US and Iran are on the cusp of reaching a deal, while Iranian officials have suggested that major issues remain unresolved.
• The ceasefire in Lebanon largely held in its first full day as Trump said he “prohibited” Israel from bombing Lebanon, but added that the issue of Hezbollah’s presence would be dealt with separately from Iran and in an “appropriate manner”.
• UNICEF said Israeli fire killed two water truck drivers it contracted in the Gaza Strip.
• Tehran and Washington have both announced that the Strait of Hormuz is now open, but Iran’s IRGC said ships will have to obtain permission and follow a designated path, while Washington said its blockade on Iranian ports would remain in place until a final...