-- Crude oil futures plummeted by over 8% in after-hours trading on Friday as signs of renewed tanker traffic via the Strait of Hormuz eased fears of prolonged supply disruptions after weeks of heightened hostilities in the Middle East.
Front-month West Texas Intermediate crude futures plunged by 9.63% to $85.57 per barrel, while Brent futures declined 6.99% to $92.45/bbl.
Viktor Shvets, head of Global Desk Strategy at Macquarie Capital, said in a Friday note that the excitement surrounding the reopening of Hormuz is understandable, but this is only the end of the beginning, "with many obstacles yet to overcome."
Five empty tankers have reportedly arrived at Iranian ports in the Arabian Gulf in recent days and begun loading crude oil, marking an early sign of renewed maritime activity as the strategic waterway reopens.
Kpler said on Friday that early vessel movements, including those linked to Adnoc LNG operations near Das Island, pointed to a cautious return of activity.
However, the analytics firm said that routing decisions, cargo loading, and security risks remained unclear, with market participants closely monitoring whether flows can recover sustainably.
On Friday, Iran's Foreign Minister Abbas Araghchi said that the Hormuz "is declared completely open," even as a US naval blockade continues to constrain flows through the Strait.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire," Araghchi said in the surprise announcement on X.
Israel and Lebanon also agreed to a 10-day ceasefire on Thursday, a move that is expected to ease regional tensions.
The opening of Hormuz was made possible by a ceasefire between Israel and Lebanon, Shvets said, noting that this can, however, only be described as a temporary and tenuous agreement.
However, Araghchi said that vessels must transit through a "coordinated route" announced by Iran's maritime authorities. An Iranian Supreme National Security Council official also said that vessels transiting the Strait will require permission from the Islamic Revolution Guards Corps, according to media reports.
President Trump said on Friday that Iran had agreed never to close the Hormuz again, while reiterating that a US naval blockade of the country's ports will remain in "full force" until Washington reaches a deal with Tehran.
Iranian authorities reportedly said vessels are not allowed to pass if they or their cargoes are linked to hostile nations. The Strait will also be closed if the US naval blockade continues.
The International Maritime Organization estimated that about 2,000 vessels, including oil and gas tankers, bulk carriers, and cargo ships, were stranded in the Arabian Gulf, along with around 20,000 seafarers, due to the conflict.