Oil Prices Collapse After Trump Wins

Oil prices dropped sharply after new claims that the Strait of Hormuz is now open to commercial traffic—raising hopes that a major disruption to global energy supply could ease.

The sudden selloff reflects growing optimism among traders that oil and fuel shipments may begin flowing more freely again, following weeks of tension in the region. The decline also comes amid signs of progress in broader ceasefire negotiations.

The announcement was driven in part by comments from Iranian Foreign Minister Abbas Araghchi, who said the key shipping route is fully accessible during the ceasefire period. Posting on X, he stated that commercial vessels would be able to pass through designated routes coordinated by Iran’s maritime authorities.

President Donald Trump echoed the development on Truth Social, highlighting the reopening as a positive step for global trade.

Markets reacted quickly. Brent crude, the international benchmark, fell to around $88.90 per barrel—its lowest level in more than a month. Meanwhile, U.S. benchmark crude hovered near $83, and stock futures climbed further into positive territory following the news.

Still, analysts caution that the situation remains far from settled. It’s unclear whether shipping companies will immediately resume operations through the narrow waterway, which typically handles roughly a quarter of the world’s seaborne oil trade. Uncertainty around enforcement, safety, and potential fees could slow any return to normal activity.

Experts also point out that even under stable conditions, navigating the Strait can be complex. Ongoing geopolitical risks—and the possibility that tensions could flare up again—may make shipping companies hesitant to move too quickly.

For now, markets appear encouraged by the announcement. But whether this signals a lasting shift or just a temporary pause in volatility remains to be seen.