Iran Opens Hormuz Strait, Brent Crude Drops 10%

Brent crude fell 10% after Iran declared the Strait of Hormuz fully open to commercial shipping for the duration of an active ceasefire. The announcement removed the supply-disruption premium that had been embedded in oil prices, triggering a sharp and immediate repricing across global energy markets. The Strait of Hormuz is the world's most critical oil chokepoint, carrying roughly 20% of global petroleum flows; any credible signal of unimpeded passage directly deflates the geopolitical risk premium traders had priced in. The scale of the single-session drop, 10% on Brent, reflects how much of the recent price elevation was fear-driven rather than grounded in actual supply changes. Energy equities, downstream refining margins, and inflation-sensitive bond markets will all absorb the move quickly. The key variable to watch: whether the ceasefire holds, since any resumption of hostilities or renewed Strait access restrictions would reverse the repricing with equal speed.