NEW YORK, April 18  (V7N) — Oil prices tumbled Friday after Iran announced it would reopen the Strait of Hormuz to commercial traffic, easing fears over global energy supply and fueling rallies in European and US equity markets.  

Iranian Foreign Minister Abbas Araghchi said the move followed a ceasefire between Israel and Lebanon. “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire,” he stated.  

The strategic waterway, through which one-fifth of the world’s crude normally flows, had been disrupted since February 28, driving oil to nearly $120 a barrel. Following Tehran’s announcement, Brent crude fell 9.1 percent to $90.38, while WTI dropped 11.5 percent to $83.85.  

“This news is having an immediate impact on markets,” said Kathleen Brooks of XTB. Analysts noted the easing of geopolitical risks combined with strong US earnings momentum. “Geopolitical developments are moving the right direction and at the same time the earning strength is hard to ignore,” said Angelo Kourkafas of Edward Jones.  

The S&P 500 closed at a record 7,126.06, up 1.2 percent on the day and 4.5 percent for the week. The Dow Jones gained 1.8 percent, while the Nasdaq rose 1.5 percent. European indices also surged, with Frankfurt’s DAX up 2.3 percent and Paris’s CAC 40 up 2 percent.  

US President Donald Trump welcomed the reopening, telling AFP: “We’re very close to having a deal.” However, Iran rejected claims it would transfer enriched uranium abroad, insisting its stockpile would remain in the country.  

Shipping companies cautiously welcomed the announcement, warning of logistical challenges. “One thousand ships cannot just go now to the entrance of the strait, that will be chaos,” said Nils Haupt of Hapag-Lloyd.  

Key Market Figures (as of 2020 GMT)

- Brent Crude: $90.38, ▼ 9.1%  

- WTI Crude: $83.85, ▼ 11.5%  

- Dow Jones: 49,447.43, ▲ 1.8%  

- S&P 500: 7,126.06, ▲ 1.2%  

- Nasdaq Composite: 24,468.48, ▲ 1.5%  

- FTSE 100 (London): 10,667.63, ▲ 0.7%  

- CAC 40 (Paris): 8,425.13, ▲ 2.0%  

- DAX (Frankfurt): 24,702.24, ▲ 2.3%  

- Nikkei 225 (Tokyo): 58,475.90, ▼ 1.8%  

- Hang Seng (Hong Kong): 26,160.33, ▼ 0.9%  

- Shanghai Composite: 4,051.43, ▼ 0.1%  

- Euro/Dollar: $1.1776  

- Pound/Dollar: $1.3530  

- Dollar/Yen: ¥158.49  

END/WD/RH