Oil falls as US and Iran declare Strait of Hormuz open to shipping, but tanker traffic stays disrupted
Source · Geopolitics desk
— Summary
Oil tumbled after Iran said it would reopen the Strait of Hormuz and Donald Trump signalled Washington and Tehran were closing in on a deal to end a war that has shaken global markets. Brent crude settled 9.1 per cent lower at $90.38 a barrel, the lowest in five weeks, while European gas prices fell 7 per cent. The S&P 500 rose 1.2 per cent, on course for a third straight weekly gain, and is up more than 9 per cent in April as traders bet on de-escalation after the conflict sent a fresh burst of inflationary pressure through the world economy.
On the ground, the picture stayed unsettled. Satellite tracking showed at least 25 vessels heading for the strait, including three container ships from French line CMA CGM, four Greek tankers and several Chinese vessels, but at least 12 that had begun the passage turned back. Iranian parliamentary Speaker Mohammad Bagher Ghalibaf dismissed Trump's claims, saying the strait "will not stay open" while the US naval blockade — ordered this week to prevent ships entering or leaving Iranian ports — remains in force. A fifth of the world's oil passed through the strait before the war; the seven-week closure has triggered a global energy crisis and handed Tehran leverage.
A nuclear deal remains the main sticking point. Trump demands Iran hand over its 440kg stockpile of enriched uranium, while Tehran insists on its right to enrich and wants to rebuild its Natanz and Fordow enrichment sites, both bombed during Israel's 12-day war last June. Pakistan is mediating; the current two-week ceasefire expires Tuesday night. Source: Financial Times, 17 April 2026, Andrew England, Malcolm Moore, Humza Jilani and Steff Chávez.
The story in one line. A verbal reopening of the Strait of Hormuz by Tehran and Washington sent oil down sharply, but real tanker traffic stayed patchy, underscoring that the war — and the nuclear standoff at its core — is not yet settled.
Key numbers
Brent crude settled -9.1% at $90.38/barrel, a five-week low.
European gas prices fell -7%.
S&P 500 up +1.2% on the day, +9%+ in April.
25 vessels heading for the strait per satellite tracking; at least 12 U-turned after starting the passage.
1/5 of the world’s oil passed through Hormuz before the war; strait has been closed for seven weeks.
440kg stockpile of enriched uranium that Trump demands Iran hand over; Iran’s Natanz and Fordow enrichment sites were bombed during Israel’s 12-day war last June.
Two-week ceasefire expires Tuesday night.
Why it matters
Iranian foreign minister Abbas Araghchi said the strait would be “completely open” to commercial shipping for the remainder of the ceasefire. But a senior Iranian official told state TV that merchant vessels would still need permission from the Islamic Revolutionary Guard Corps (IRGC) before transiting. Matt Smith at Kpler put it bluntly: “The Iranian authorities appear to still be acting like bouncers, picking and choosing which ships are allowed to pass through the Strait.”
Payment-in-kind risk is elsewhere: oil and shipping executives want clear US and Iranian verification before transits resume, and the US naval blockade on Iranian ports stays in place until a deal is agreed. The research group Rapidan Energy expects “minimal” strait traffic through end-April because Iran’s insistence on controlling Hormuz flows is a “non-starter” for the Trump administration.
Takeaway
Markets are pricing a de-escalation that is not yet on paper. If Hormuz clears in practice before 22 April and a framework on uranium emerges, the current oil and equity trajectory continues. If IRGC gating or nuclear positions harden, the -9% move in Brent is a short trade. The binary sits with Pakistan’s mediation and with Trump and Tehran’s next meeting.
Source: Financial Times, 17 April 2026, Andrew England, Malcolm Moore, Humza Jilani and Steff Chávez.