April 17, 2026 | 09:26 pm
TEMPO.CO, Jakarta - Oil prices dropped by over 11% after Iranian Foreign Minister Abbas Araghchi said Tehran would reopen the Strait of Hormuz for the rest of its truce with the United States.
Brent crude oil, which serves as a global benchmark for prices, plunged by $11.12 to $88.27 a barrel at 1311 UTC.
Analysts have argued that markets are reacting to a sign of deescalation between the warring parties.
"Comments from Iran's foreign minister indicate a deescalation as long as the ceasefire is in place, now we need to see also if the number of tankers crossing the Strait increases substantially," Giovanni Staunovo, an analyst at Swiss financial giant UBS, was cited by Reuters news agency as saying.
Some 20% of global oil deliveries pass through the crucial waterway.
While a two-week US-Iran ceasefire went into effect on April 8, Tehran argued that Washington ally Israel's continued offensive in Lebanon constituted a violation of the truce.
On Thursday, Israel reached a 10-day ceasefire deal with Lebanese militant group Hezbollah.
Trump threatens continued blockade
However, US President Donald Trump stressed that the United States' naval blockade of Iranian ports would stay in force until Washington reaches a deal with Tehran in a social media post issued after Araghchi's announcement.
"THE STRAIT OF HORMUZ IS COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE, BUT THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN, ONLY, UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE," Trump said in the post on his Truth Social platform.
He said that the negotiation process would proceed swiftly and that Washington and Tehran had already agreed on most points in talks.
The United States and Iran engaged in talks on April 11-12 in Islamabad, Pakistan, which resulted in no apparent breakthrough.
Read: Iran War: Strait of Hormuz Open Amid Israel-Lebanon Truce
Click here to get the latest news updates from Tempo on Google News
Trump's Strait of Hormuz Blockade and What It Means for Global Trade
4 hari lalu
Trump has announced a blockade of the Strait of Hormuz effective April 13, cutting off all vessels to Iranian ports after ceasefire talks collapsed.
ADB: Asia-Pacific Growth Slows to 5.1% as Middle East War Rages
6 hari lalu
The Asian Development Bank (ADB) offers its forecast on the economic growth in the Asia-Pacific region.
Oil Prices Near $100 Amid Worries Over US-Iran Truce
8 hari lalu
OIl prices had previously fallen after the United States and Iran agreed to a two-week ceasefire.
Prabowo Defends Frequent Overseas Visits for Energy Security
8 hari lalu
Indonesian President Prabowo Subianto discusses his frequent trips abroad and the reasons behind them.
Oil Slides Below $100 After Trump Announces Two-Week Ceasefire
9 hari lalu
Oil prices plunged Tuesday evening after President Trump announced a conditional twoweek ceasefire with Iran tied to safe passage through Hormuz.
OIl Prices Surge Ahead Trump's Strait of Hormuz Deal Deadline for Iran
10 hari lalu
Trump launched fresh threats against Iran as the deadline to reopen Strait of Hormuz looms.
Global Oil Prices Jump as Trump's Hormuz Deadline Approaches
10 hari lalu
Brent crude, the global benchmark, rose 1.4 percent to US$111.33 per barrel, while U.S. West Texas Intermediate climbed 2.8 percent to US$115.61.
Budget Deficit Buffer
10 hari lalu
Finance Minister Purbaya Yudhi Sadewa is relying on a "buffer" to weather global oil price volatility.
Indonesia Enforces 50-Liter Fuel Cap Until May 2026
10 hari lalu
The Indonesian government has limited the purchase of subsidized fuel to 50 liters per day from April to May 2026.
Indonesia Has Enough Funds to Withstand US$100 Oil, Says Purbaya
11 hari lalu
Finance Minister Purbaya Yudhi Sadewa said Indonesia will keep subsidized fuel prices unchanged until end-2026 despite rising oil prices.
