Oil Tumbles 11% as Iran Opens Hormuz Strait Amid Ceasefires


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude futures tumbled almost 12% Friday (4/17), 
driving product prices lower too, after Iran declared the Strait of Hormuz open 
to all commercial ships following ceasefires clinched for itself and Lebanon 
from U.S. and Israeli attacks.

   The announcement effectively lifted Iran's blockade of the waterway, which 
began with the Middle East conflict seven weeks ago, presumably allowing daily 
transit to resume for a fifth of the world's petroleum cargoes.

   It boosted hopes that U.S. and Iranian negotiators could agree on a 
permanent peace deal at a new round of talks in Islamabad, which, according to 
U.S. President Donald Trump, might be held this weekend. Yet, conflicting 
demands by diplomats on both sides regarding preconditions for a deal signaled 
that an agreement might still be some way off.

   NYMEX WTI crude for May delivery settled down $10.84, or 11.5%, at $83.85 
bbl. For the week, the U.S. crude benchmark slid by 13%.

   ICE Brent for June closed down $9.01, or 9%, at $90.38 bbl. The global crude 
benchmark posted a more modest decline of 5% on the week.

   Among refined products, gasoline proxy RBOB finished NYMEX trading for the 
May contract at $3.0048 gallon, down $0.6056, or 17%.

   Diesel feedstock ULSD ended the NYMEX trading for May down $0.4355, or 11%.

   The US dollar index softened by 0.150 points to 97.875 against a basket of 
foreign currencies.

   It was a decisively lower day in energy markets, with WTI almost breaking 
below the key $80 mark and Brent slipping under $90, as market participants bet 
on the likelihood of an U.S.-Iran peace deal by the weekend despite reports of 
differences between the two sides.

   The United States is reportedly considering the release of $6 billion in 
frozen Iranian assets as the initial phase of a potential $20 billion deal to 
conclude hostilities, media reports said.

   Trump also claimed Friday that Iran had agreed to all U.S. conditions, 
including the removal of Iran's entire stockpile of highly enriched uranium. He 
asserted that this material -- which he referred to as "nuclear dust" -- must 
be transported to the United States.

   The U.S. president rejected a time-bound pause on nuclear activities -- such 
as the 20-year "sunset" clauses seen in previous deals -- saying the suspension 
must be "unlimited" and not conditioned on a specific timeframe.

   Iranian officials have expressed a readiness to prove the peaceful nature of 
their nuclear program but maintained that 60% enriched uranium will not be 
transported out of the country.




(c) Copyright 2026 DTN, LLC. All rights reserved.