Iran’s word that the Strait of Hormuz is open for all commercial oil tankers and commercial traffic and will never be closed again sent crude oil prices plunging Friday at nearly 12%.
The news renewed optimism that the U.S. and Israeli led war that devastated Iran’s military sent oil prices into the $80 range weeks after it had soared to nearly $120 a barrel at one point.
Brent crude, the global benchmark, officially finished down $9.01 or 9.07% a barrel to close at $90.38 a barrel. It had earlier fallen to a session low of $86.09 a barrel.
West Texas Intermediate crude in the states lost $10.48 or 11.45% and finished at $83.85 a barrel on the New York Mercantile Exchange. It had earlier fallen to $80.56 a barrel.
Both Brent and WTI experienced their biggest daily declines since April 8.
Investors regained optimism after a senior Iranian official said unfreezing Iranian funds was part of the deal. Nearly 20 ships were seen Friday moving from the Gulf to the exit via the Strait of Hormuz. President Trump also said Friday the U.S. will enter Iran at what he called a “leisurely pace” to recover Iran’s enriched uranium and bring it to the U.S.
As crude oil prices fell, natural gas managed a gain of $0.051 or 1.93% to close Friday at $2.698 MMBtu.
Oklahoma energy stocks took it on the chin Friday with a majority finishing with losses. LSB Industries led them with a 9% drop for the day. The few with gains included Empire Petroleum at nearly 9% and USA Rare Earth at more than 8%.