FX.co ★ Oil Plunges More than 10%

WTI crude futures tumbled more than 10% to below $84 per barrel on Friday, hitting their lowest level in nearly five weeks, after Iranian Foreign Minister Abbas Araghchi announced that the Strait of Hormuz is now fully open to commercial traffic for the duration of the ceasefire. The announcement fueled hopes that one of the most severe disruptions to global energy supplies in recent history may be easing. It came on the heels of comments from President Donald Trump, who said recent Iranian concessions could lay the groundwork for a broader peace agreement. Losses deepened following reports that the US may unfreeze $20 billion in Iranian assets in exchange for enriched uranium stockpiles, with additional talks expected over the weekend. After nearly 50 days of curtailed flows through a key chokepoint, the market is increasingly discounting further supply risk from the conflict.