Oil prices plunge 12% after Iran says Strait of Hormuz is open
S E E D E D C O N T E N T
April 17, 2026, 9:41 AM EDT / Updated April 17, 2026, 5:02 PM EDTBy Steve Kopack
The price of oil plunged sharply and two U.S. stock indexes hit all-time highs Friday, after Iran's foreign minister said the Strait of Hormuz was open for commercial vessels.
U.S. crude oil plunged 11.4% to $83.85 per barrel, its lowest level since March 10, while international Brent crude slid 9% to $90.38 per barrel.
Friday was the second largest one-day drop since the war began for both U.S. and Brent crude oil.
Heating oil futures, which are a proxy for jet fuel, dropped 10%. Wholesale RBOB gas futures also fell 5%.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran," Abbas Araghchi wrote in a post on X early Friday.
It was not immediately clear if the reference to a "coordinated route," meant that ships would need to pay a toll to Iran, as some have reportedly done in recent weeks. It was also not immediately clear if ships in the region, which have been threatened and attacked, would trust this announcement.
Shortly after the Iranian minister's post, President Donald Trump celebrated the news with his own post on Truth Social, which read: "IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!"
However, Trump, in a second post, said that "the Naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete."
GasBuddy analyst Patrick De Haan wrote on X that the shift in oil prices could quickly translate to lower gas prices.
"This could accelerate sending fuel prices lower starting this weekend with the national average likely falling below $4/gal to perhaps $3.65-$3.85," De Haan wrote.
As of Friday afternoon, the average price per gallon was $4.09, according to AAA, and has been declining a few cents each day this week.
Oil prices remain elevated, however, even given Friday's drop. Since the start of the war, the price of U.S. crude oil is up 25%, and it's up more than 45% since the start of the year.
The S&P 500 ended Friday up by 1.2% to record a more than 4.5% gain this week. The Nasdaq Composite ended the trading day up 1.5%, to post a 6.8% gain for the week. Both closed at new record highs.
The Dow also jumped, ending on Friday higher by 868 points, or 1.8%, and the Russell 2000 index closed up 2.1%.
Friday marked the third straight week of gains for all three major indexes.
U.S. Treasury yields also moved sharply lower. The yield on the 10-year U.S. government bond fell to 4.24%, its lowest level since March 18.
Stocks across Europe also rallied higher on the Iranian minister's announcement, with the Stoxx 600 index rising 1.4%. Germany's DAX jumped 2.2%, stocks in France rose 2%, and the benchmark FTSE 100 index in the U.K. rose nearly 1%.
European leaders, who were holding a summit when the announcement from Iran emerged, cautiously welcomed the news.
"Under international law, transit through waterways like the Strait of Hormuz must remain open and free of charge," said the E.U.'s top diplomat, Kaja Kallas, in a post on X. "Any pay-for-passage scheme will set a dangerous precedent for global maritime routes."
French President Emmanuel Macron and U.K. Prime Minister Keir Starmer, who were leading the summit, also welcomed the news. But Macron said that securing the strait needed to be done by a neutral and independent party. "The strait should be reopened immediately with no tolls and no restrictions," Starmer added.
Two of the world's largest shipping companies also responded cautiously.
"Since the outbreak of the conflict, we have followed the guidance of our security partners in the region, and the recommendation so far has been to avoid transiting the Strait of Hormuz," Maersk said in a statement. "Any decision to transit the strait will be based on risk assessments and close monitoring of the security situation."
Hapag-Lloyd said "there are still some open questions," but that its "crisis committee is in session and will try to resolve all open items" in the next 24 to 36 hours.
"If all open issues are cleared (i.e. insurance coverage, clear orders of Iranian government/military about the exact sea corridor to be used and the sequence of ships leaving) we would prefer to pass the strait as soon as possible," the company's statement said.
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A resounding victory for the US. Iran played the trump card it’s held in its pocket for 50 years and it backfired.
That must explain why the strait is closed again, a pyrrhic victory. /S
So what has the United States gotten from this 'Victory'? Seems like a public accounting would be appropriate.
What "victory?" Oil prices rose over 40% at the start of the war. Gas prices rose over 20%, diesel rose about 30%, and heating oil nearly doubling. And you think a mere 12% "plunge" from that is a "victory?" Get back to me when prices return to pre-war levels. Then we can talk "victory."
Your measure of victory is oil prices less than 60 days into a war. Good stuff.
No, that's a measure of failure. Especially given all of Trump's false bravado that goes along with it.
And you signing onto a peremptory mission accomplished narrative is hilarious.
That has to be satire.
More like bad comedy.
Victory? We still have a lunatic president. Next week, next month, next hour, he will do something that either endangers Americans or embarrasses the shit out of us. He is mentally ill. Until people, especially his enablers, come to grips with this there will be no "victory".
This is what Copilot AI says about the strait of Hormuz as of this hour
Perplexity AI
Iran has indeed reversed the brief reopening and says the Strait of Hormuz is back under “strict control,” tied to its dispute with the U.S. over the blockade of Iranian ports. Multiple reports say the restriction was reimposed on April 18, 2026, just one day after the waterway was declared open, and that Iranian forces also fired on or pressured at least one tanker in the area.
What changed
Iran’s joint military command said control of the strait had “returned to its previous state” under armed forces oversight, and that transit would stay restricted while the U.S. blockade remained in place. Reuters-style live coverage and AP reporting also indicate the move followed President Trump’s statement that the blockade would remain “in full force” until a deal was reached.
Why it matters
The Strait of Hormuz is a critical shipping route, so even short-lived changes in access can affect oil tankers, cargo movement, and broader market confidence. The reporting suggests the situation remains volatile rather than settled, with ships reportedly turning around after the new restrictions were announced.
What a fckn mess Trump has solely created for the world.
Why do I tend to believe Iran over our own White House, possibly due to not being a gullible fool ...
Its amazing that we STILL hear people say "Why dont you believe the president?"
It's amazing that we have people say, in one breath..."he lies, he lies, he lies thousands and thousands of times, and we can't believe anything he says, then in the next breath, they say.."believe it when he says will annihilated a civilization".
Keeping up with the talking points must take a lot out of ones day.
Not going to be a victory unless the extreme religious dictators are removed from power and prevented from taking over again