Crude oil prices crashed in one of the sharpest single-session moves in recent memory on Friday evening after Iranian Foreign Minister Seyed Abbas Araghchi announced on X at 6:15 PM IST that the Strait of Hormuz is declared completely open to all commercial vessels for the remaining period of the ceasefire. Brent crude collapsed 8.21% to $91.29 per barrel as of 6:35 PM IST, shedding $8.16 from its prior level, while WTI futures plunged 11.72%, falling $10.92 to $82.26 per barrel — a move of extraordinary magnitude for a commodity that had been trading above $100 for weeks.
The announcement is the single most significant energy market development since the Strait of Hormuz was closed on February 28, the day the US-Iran war began.
What Araghchi Said
Posting directly on X, Araghchi wrote: “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, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”
The post accumulated 111,000 views within minutes of publication and was immediately picked up by global newswires and trading desks, triggering the cascade of selling that drove both benchmarks to their sharpest intraday falls in months. The statement is conditional — the opening applies for the remaining period of the ceasefire, which expires approximately April 21-22 — but markets have moved decisively on the headline regardless of the temporary framing.
Why This Move Is Historic
The Strait of Hormuz has been partially or fully closed to commercial shipping since February 28, representing the most severe disruption to global oil supply since the 1970s energy crisis. The International Energy Agency had explicitly identified the reopening of the Strait as the single most important factor for easing global energy stress. Flows through the waterway collapsed from approximately 20 million barrels per day before the war to 3.8 million barrels per day at the peak of the disruption, according to IEA data — a supply shock that drove Brent above $100, triggered IMF global growth downgrades, and sent India’s import bill spiralling as the rupee fell to record lows near ₹95 per dollar.
Araghchi’s announcement does not represent a permanent reopening or a resolution of the underlying conflict. It is explicitly tied to the ceasefire period and conditioned on the Lebanon ceasefire holding — a linkage that Iran has maintained throughout, arguing that Israeli operations in southern Lebanon constitute a ceasefire violation that affects its own obligations. The announcement’s timing, hours after Israel’s Defence Minister Katz publicly committed to Hezbollah disarmament south of the Litani River by political or military means, suggests that Friday’s Hormuz opening may also be Iran’s attempt to demonstrate good faith ahead of the ceasefire expiry and potential second round of talks.
What This Means for India
For India, the Hormuz opening — even temporarily — is unambiguously positive across multiple dimensions simultaneously. The crude import bill, which has been running at dramatically elevated levels since February, will ease with every dollar that oil falls. The rupee, which had weakened to record lows partly on the energy import pressure, will find support. Oil marketing companies including Indian Oil, BPCL and HPCL, which have been absorbing elevated crude costs, see their margin environment improve immediately. Aviation stocks, paint companies, tyre manufacturers, and the broader consumer sector that has been paying elevated input costs linked to oil will all benefit from sustained lower crude prices.
MCX Crude, which was trading at ₹8,692 at the morning session, will open sharply lower when Indian commodity markets next trade, reflecting the international benchmark moves already underway.
The Ceasefire Expiry Risk
The single most important caveat in Araghchi’s statement is the phrase “for the remaining period of ceasefire.” The ceasefire expires on approximately April 21-22 — four to five days from now. If the second round of US-Iran talks, which NBC News has reported could happen as early as this week in Islamabad, fails to produce a framework agreement or at minimum a ceasefire extension, the Hormuz closure could be reimposed within days and the oil price crash of Friday evening would partially reverse.
Markets are currently pricing in the opening as a durable development. Whether it proves to be one depends entirely on whether Pakistani mediators can keep both sides at the table long enough to convert a temporary goodwill gesture into a structural arrangement — the hardest diplomatic task of the entire conflict, attempted with the least time remaining.
Trump said earlier on Friday that the war was “very close to over” and that the world should brace for “an amazing two days.” Araghchi’s Hormuz announcement may be exactly what he was referring to.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Oil prices are subject to rapid change given the developing geopolitical situation. Readers are advised to consult a SEBI-registered financial advisor before making investment decisions.