Oil prices plunge as Iran says Strait of Hormuz 'open' during ceasefire

BBC: Oil prices have plummeted after Iran said the Strait of Hormuz would be "completely open" to commercial ships for the remainder of the ceasefire in the US-Israel war with Iran.

The cost of a barrel of Brent crude fell to $88 (£65) a barrel after the announcement, having been above $98 earlier on Friday.

The Strait of Hormuz is a narrow strip of water south of Iran through which a fifth of the world's oil and liquified natural gas is typically transported.

US President Donald Trump welcomed Iran's statement, but maritime groups are still verifying it.

Iranian Foreign Minister Abbas Araghchi said: "The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire."

Global markets rallied on the announcement, with S&P 500 index of the biggest firms listed in the US closed up 1.2%. The Cac index in Paris and Dax in Frankfurt both ended the day around 2% up while London's FTSE 100 closed 0.7% up.

The Strait of Hormuz has been effectively shut by Iran since the US and Israel launched military strikes in the country in late February.

Tanker traffic through the waterway has slowed to a trickle, drastically reducing the amount of oil and gas available on global markets and causing prices to spike.