Oil Prices Plunge After Iran Says Strait of Hormuz Is “Completely Open,” Trump Claims Nuclear Deal Progress
The energy markets were upended on Friday as a series of de-escalations in the Middle East triggered the largest single-day sell-off in oil since early April. WTI Crude and Brent prices plummeted after Iran officially declared the Strait of Hormuz “completely open” for commercial shipping, followed by President Trump’s claims of a looming “historic” nuclear agreement.
This dual-hit of supply normalization and diplomatic progress has effectively wiped out the “war premium” that had kept oil prices inflated throughout March.
The Hormuz Effect: Supply Chains Unlocked
Iranian Foreign Minister Abbas Araghchi confirmed that all commercial vessels can now transit the Strait for the remainder of the current ceasefire. While the U.S. naval blockade remains in effect strictly for Iranian-only cargo, the opening of the world’s most vital oil chokepoint has flooded the market with renewed confidence.
- WTI Crude: Settled down 11.45% at $83.85, after touching an intraday low of $80.56.
- Brent Crude: Dropped 9.07% to settle at $90.38.
- Market Impact: Ship-tracking data already shows over 20 tankers moving toward the exit of the Gulf, signaling a rapid return to flow normalization.
Trump’s “Nuclear Dust” Claims
The sell-off intensified after President Trump, in a Friday phone interview, suggested that a deal with Tehran is “imminent.” Key points from the President’s update include:
- Uranium Extraction: Trump claimed Iran has agreed to hand over its enriched uranium (which he termed “nuclear dust”) to the U.S. for safe disposal.
- No Financial Payout: The President explicitly denied reports of a $20 billion payout to Iran, stating “no money is changing hands.”
- Mine Clearing: The U.S. is reportedly working directly with Tehran to remove sea mines from the traditional shipping lanes in the Strait.
Technical Outlook: Where is the Floor?
From a technical perspective, the sudden move has left oil deeply oversold. Traders should watch the $80.00 psychological support for WTI. If the weekend negotiations rumored to be taking place in Islamabad—yield a formal Memorandum of Understanding (MoU), we could see a further slide toward the $75.00 zone.
Conversely, any breakdown in the ceasefire before the April 22 deadline would likely cause a violent “gap up” back toward the $100 level.