Global oil prices plummeted by more than 10% today. Iran’s Foreign Minister declared the Strait of Hormuz completely open for commercial vessels. The reopening coincides with a 10-day ceasefire between Israel and Lebanon. This chokepoint handles approximately one-fifth of the global oil supply.
Brent crude fell below $90 per barrel. West Texas Intermediate dropped to approximately $84 per barrel. Major energy stocks including ExxonMobil and BP declined by more than 5%. Investors are now pricing in lower oil revenues following the eased supply fears.