-- (Updates prices and adds detail.)
Oil prices plunged early Friday after Iran reopened the Strait of Hormuz to commercial traffic, freeing tankers trapped in the Persian Gulf and ending a supply shock that sent prices to four-year highs.
West Texas Intermediate crude oil for May delivery was last seen down $10.89, or 11.5%, to US$83.80 per barrel, while June Brent oil was down $11.00 to US$88.39.
The Guardian reported Abbas Araghchi, Iran's foreign minister, said in a social-media post that "passage for all commercial vessels through strait of Hormuz is declared completely open for the remaining period of ceasefire".
Ceasefires are holding on both fronts in the Middle East, as Israel and Lebanon on Thursday agreed to a ceasefire in Israel's war on Hezbollah militants in the country. There are also hopes for further talks between the U.S. and Iran to end their conflict that had closed the Strait of Hormuz, a chokepoint for 20% of daily global oil and LNG demand supplied by Persian Gulf nations.
An Israeli stand down on attacks in Lebanon was a key part of Iran's demands in talks with the U.S. and may ease the path for further talks between the two countries. U.S. President Trump on Thursday said he expects talks moderated by Pakistan to soon resume.
The Wall Street Journal on Friday reported comments from Iranian Deputy Foreign Minister Saeed Khatibzadeh that Iran is expecting talks to result in a permanent settlement to the war rather than another temporary ceasefire, citing Turkey's state news agency, while saying Iran is looking to regulate transits through the vital Strait.