Iran declares the Strait of Hormuz 'fully open' and Brent price drops 9%
Strait of Hormuz, on the way itself, key for energy transport Photo: EFE
TL;DR
- Iran declared the Strait of Hormuz fully open for all merchant ships during the remainder of the ceasefire period with the US.
- The announcement led to an immediate 9% drop in the price of a barrel of Brent crude.
- The Strait of Hormuz is a critical energy artery, handling 20% of global oil transit.
- The US, while acknowledging the opening, will maintain its naval blockade on Iranian-origin or destination vessels.
- The stability of the corridor depends on the finalization of the agreement between Iran and the US before the ceasefire expires.