Brent crude oil prices have dropped by nearly 10% after Iran announced that the Strait of Hormuz is open for commercial shipping during the ceasefire period. This development marks a significant shift in the ongoing tensions between the United States and Iran.

The Strait of Hormuz, one of the world’s most crucial oil transit chokepoints, had been at the center of escalating concerns following the US blockade of Iranian ports. President Donald Trump had previously stated that the blockade would remain in place until a peace deal was agreed upon.

However, Iranian officials have now indicated that the waterway will remain accessible for commercial vessels for the duration of the ceasefire. This announcement has provided relief to global markets, which had been bracing for potential supply disruptions.

The UK and France have also announced plans to lead a defensive mission in the Strait of Hormuz, with further details expected following a meeting in London next week. This international cooperation highlights the strategic importance of maintaining stability in the region.

Energy analysts remain cautious, noting that while the immediate crisis appears to be easing, the situation remains volatile. The long-term impact on oil prices and global energy markets will depend on the durability of the ceasefire and the progress of diplomatic negotiations.