Global oil markets took a hit on Friday as prices dropped almost 10 percent in one day. This sharp fall followed the dramatic reopening of the Strait of Hormuz, a key waterway that carries about one-fifth of the world’s crude oil.
Iran’s Foreign Minister Abbas Araghchi was the first to announce that the corridor was “completely open” under a fragile ceasefire. A few hours later, U.S. President Donald Trump confirmed the reopening, which quickly affected trading floors around the world.
For weeks, the Strait’s closure caused panic, pushing crude oil prices above $100 per barrel and raising fears of a long-lasting energy crisis.
Now that tankers can move again, traders quickly lowered the risk premium, bringing benchmark crude down to $86 per barrel.
This change is more than just a market event; it is a lifeline for millions. In Nigeria, fuel prices jumped from N760 to N1,300 per litre during the conflict.
The reopening now offers some relief to families struggling with inflation and a falling standard of living.
What started as a regional standoff has turned into a global issue. The Strait of Hormuz has once again shown how much it can affect countries, markets, and everyday people.