US-Israel war volatility drives oil swings despite Hormuz reopening
Iran declares key shipping route open during ceasefire, but markets remain unstable amid US blockade and ongoing risks
London (MNTV) — Global oil prices dropped sharply after Iran announced that the strategically vital Strait of Hormuz would remain open to commercial traffic during the current ceasefire, offering temporary relief to markets rattled by months of disruption caused by the US-Israel war.
Benchmark crude prices fell significantly following the announcement, retreating from recent highs as traders reacted to the possibility of restored supply flows.
The waterway, which typically carries roughly a fifth of global oil and gas shipments, has been severely disrupted since military actions by the United States and Israel triggered a wider regional crisis earlier this year.
Iran’s Foreign Minister Abbas Araghchi said all commercial vessels would be allowed safe passage for the duration of the truce, signaling an attempt to stabilize conditions despite continued tensions.
However, the announcement has done little to restore confidence among shipping operators, many of whom remain wary of navigating the route due to ongoing security threats and the continued US naval blockade.
Maritime organizations have warned that the area cannot yet be considered safe, citing unresolved risks such as potential mines and unclear security conditions.
The reopening comes after weeks of near paralysis in tanker traffic, which drastically reduced global energy supplies and drove prices sharply higher.
Before the conflict escalated, oil traded at significantly lower levels, but surged past $100 per barrel as the crisis intensified, exposing the fragility of global energy markets under geopolitical strain.
While Donald Trump welcomed Iran’s announcement, his administration has maintained its aggressive posture, insisting that naval restrictions on Iran will remain in place until a broader political settlement is reached.
Critics argue that such contradictory measures—publicly endorsing stability while sustaining economic and military pressure—have prolonged the crisis and deepened market uncertainty.
International bodies, including International Maritime Organization, are still working to verify the practical implications of Iran’s declaration, noting that ship movement through the strait remains limited.
The disruption has had far-reaching consequences beyond oil markets, pushing up fuel costs, straining airline operations, and threatening global food supply chains due to restricted fertilizer shipments. Analysts warn that even if stability returns, supply chains will take months to recover from the shock created by the conflict.
The situation has underscored how US and Israeli military actions have destabilized one of the world’s most critical energy corridors, leaving global markets exposed to volatility and consumers facing sustained economic pressure.
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