Brent Crude Plunges Over 10% to Lowest in Two Weeks as Tehran and Trump Signal Safe Passage Through Strait of Hormuz

Brent crude oil tumbled sharply on Friday, falling more than 10% to around $88–$89 per barrel, its lowest level in approximately two weeks, as positive signals from both U.S. President Donald Trump and Iranian officials eased fears of prolonged disruption in the critical Strait of Hormuz.

The sharp decline reflects growing optimism that a fragile ceasefire and diplomatic efforts could restore tanker traffic through the narrow waterway, which carries roughly one-fifth of global seaborne oil and LNG supplies.

Trump has repeatedly highlighted progress on reopening the strait, including recent statements indicating that safe passage is being facilitated under the ongoing truce framework. Tehran has signaled willingness to allow commercial traffic, helping reverse some of the supply shock that had driven prices significantly higher during the escalation.

Global stocks reacted positively to the lower energy costs, with reduced inflation fears providing support. However, traders continue to watch developments closely as the situation in the Gulf remains fluid.