Brent price down almost 12% after Iran announces opening of Strait of Hormuz

Lead

Brent crude futures plunged nearly 12% on April 17 after Iran's foreign minister said the country had opened the Strait of Hormuz to commercial ships, according to trading data reported by TASS. The announcement, made amid a ceasefire in Lebanon, accelerated a decline that began earlier this month following a US-Iran truce, sending oil prices to multi-week lows and triggering sharp moves across global equities and commodities.

Coverage Comparison

TASS's reporting on the oil price collapse and its aftermath spans multiple stories from April 8 through April 24. The April 17 report details the intraday slide in Brent futures for June 2026 delivery on London's ICE exchange, with prices falling below $91, $90, and $88 per barrel for the first time since March 11, 2026. The same report attributes the drop directly to a statement by Iranian Foreign Minister Abbas Araghchi, who said Iran had opened the Strait of Hormuz to all commercial vessels for the remainder of the Lebanon ceasefire, with ships transiting via a route agreed with Tehran.

Earlier coverage from April 8 describes a sharp initial crash in oil prices following US President Donald Trump's announcement of a two-week bilateral ceasefire with Iran. That report notes Brent futures lost 15% at the start of trading, falling below $92 per barrel, while WTI dropped 16.33% at one point. The ceasefire was proposed by Pakistani Prime Minister Shehbaz Sharif, and included Iran's readiness to open the Strait of Hormuz. Subsequent TASS dispatches from the same day detail the broader market impact, including a surge in Asian stock markets and declines in Russian oil company shares.

A separate TASS article from April 24 shifts focus to Russian oil discounts, quoting an analyst who predicts discounts will continue to narrow even if the strait remains open.

Key Claims

According to TASS, citing trading data, Brent crude futures for June 2026 delivery fell by almost 12% on April 17 following Araghchi's statement. Before the statement at 3:25 p.m. Moscow time, Brent was down 5.06% at $94.36 a barrel. By 3:53 p.m., it had dropped 8.54% to $90.90, falling below $91 for the first time since April 8. By 3:55 p.m., it was down 9.93% at $89.52, briefly touching below $90, and by 4:11 p.m., it reached $87.71, down 11.75%. At 4:18 p.m., Brent was down 10.06% at $89.39, while WTI for June 2026 was down 10.58% at $81.52.

The April 8 reports document an earlier, even steeper collapse. At 3:00 a.m. Moscow time, Brent was down 15.35% at $92.50; by 3:05 a.m., it was down 15.66% at $91.16, while WTI for May delivery was down 16.33% at $94.50. By 7:00 a.m., Brent had recovered somewhat to down 13.46% at $94.56, and WTI was down 14.76% at $96.28. The reports attribute the moves to Trump's announcement of a ceasefire with Iran, which included a proposal by Pakistani Prime Minister Shehbaz Sharif and Iran's readiness to open the Strait of Hormuz. Pakistani Prime Minister invited US and Iranian delegations to Islamabad on April 10, with US Vice President JD Vance, special envoy Steve Witkoff, and Jared Kushner expected to participate, according to CNN, as cited by TASS.

TASS also reported on the broader market response. Asian stock markets surged on April 8: India's Sensex and Nifty 50 rose more than 3%, the Shanghai Composite gained 2.69%, the Shenzhen Component rose 4.79% in its largest single-day gain of 2026, and the Taiex Index in Taiwan jumped 4.61%. Meanwhile, the MOEX Index in Russia fell 0.97%, and shares of Russian oil companies dropped 1.3-5.26% on the Moscow Exchange: Rosneft fell 5.26%, Lukoil 2.71%, Gazprom Neft 3.23%, Tatneft 4.57%, and Surgutneftegas 1.3%. European gas prices also fell sharply, down 18% at the TTF hub to around $518 per 1,000 cubic meters.

Perspectives

Iranian government (via Foreign Minister Abbas Araghchi): Iran has opened the Strait of Hormuz to all commercial ships for the remainder of the Lebanon ceasefire, with vessels transiting via a route agreed with Tehran.

US government (via President Donald Trump): Trump announced a two-week bilateral ceasefire with Iran, citing Iran's readiness to safely open the Strait of Hormuz.

Pakistani government (via Prime Minister Shehbaz Sharif): Pakistan proposed the ceasefire and invited US and Iranian delegations to Islamabad for further negotiations.

Russian analyst Andrey Polischuk (Euler): Discounts on Russian oil will continue to decline through 2026 even if the Strait of Hormuz opens. He expects Urals discount to narrow from $28 to $17 per barrel by Q4, and ESPO to $10, because Russian oil is seen as more reliable and freight costs are normalizing.

Russian investment official Kirill Dmitriev: Energy markets may take months to stabilize even if the strait remains open.

Russian analyst Alexander Frolov: Oil prices could range from $60 to $150 per barrel depending on developments around the temporary truce.

Russian official Dmitry Medvedev: European 'Russophobes' will face prolonged austerity due to the absence of cheap oil.