Oil Plummets, Markets Surge as Iran Opens Strait of Hormuz

LONDON, April 17 - Global markets reacted sharply Friday after Iran's foreign minister declared the Strait of Hormuz open for commercial vessels during the current ceasefire.

The price of benchmark Brent crude futures tumbled 9% to $90 a barrel, while U.S. crude fell 10% to $81.5. This marks a significant drop from late March highs near $120.

Stocks around the world, already trading near record highs, jumped further. Europe's STOXX 600 rose 1.3%, and S&P futures gained 0.9%.

Government bonds also rallied. The benchmark 10-year U.S. Treasury yield dropped 7 basis points to 4.23%, its lowest since mid-March. Germany's 10-year yield fell 8 basis points to 2.96%.

Analysts say the move removes a major economic tail risk, allowing commodity flows to return toward pre-conflict levels. The dollar slid 0.6% against the yen, while the euro rose 0.6% to a two-month high of $1.1848.