Desk Correspondent, Tehran - Brent crude prices tumbled nearly 10% to around $89 per barrel after Iran's announcement of the Strait of Hormuz reopening to commercial shipping, alleviating fears of prolonged supply disruptions from the key oil chokepoint. West Texas Intermediate (WTI) crude fell over 11%, settling near $82-$84, as markets rallied on eased geopolitical risks tied to the US-Iran tensions. This sharp reversal follows weeks of volatility, with prices exceeding $100 amid the blockade and regional conflicts.

This volatility stemmed from the Strait's restrictions amid U.S. naval blockades on Iranian ports and linked Israel-Lebanon clashes, which threatened 20-25% of world oil flows and fueled price surges. Iran's Foreign Minister Abbas Araghchi's confirmation of full access during a temporary ceasefire sparked the sell off, boosting global stocks and strengthening currencies like South Africa's rand. Traders now watch US-Iran talks closely, as ongoing blockades could reignite upward pressure despite the relief rally.

The plunge underscores the Strait of Hormuz's outsized influence on energy markets, offering short term stability but highlighting persistent fragility tied to geopolitical flashpoints. With President Trump's blockade in place pending a comprehensive deal, investors remain on edge for any signs of escalation that could swiftly reverse gains and ripple through global economies. Sustained diplomacy will be key to preventing further wild swings.