Oil prices fell sharply, and stocks moved higher on Friday after Iran signaled that the Strait of Hormuz remains open to shipping, reports noted. The development was seen by traders as a potential easing point in a conflict that has disrupted global energy markets, and is being viewed by President Trump as a major accomplishment in the weeks-long conflict

Oil prices fell sharply, and stocks moved higher on Friday after Iran signaled that the

Oil prices fell sharply, and stocks moved higher on Friday after Iran signaled that the Strait of Hormuz remains open to shipping, reports noted. The development was seen by traders as a potential easing point in a conflict that has disrupted global energy markets, and is being viewed by President Trump as a major accomplishment in the weeks-long conflict.

Iranian Foreign Minister Seyed Abbas Araghchi said in a social media post that the strait is “completely open.” He added that vessels moving through the chokepoint must follow a “coordinated route” set by Iran’s maritime authorities.

The Strait of Hormuz is a critical passage for global oil shipments. Any disruption in the area has historically triggered volatility in energy markets.

Markets reacted immediately to the statement. U.S. crude futures for May delivery dropped 11.1% to $84.26 per barrel, while Brent crude for June fell 10.5% to $88.95.

The move followed comments from President Trump about the broader conflict. He said late Thursday that the war in Iran, which began Feb. 28, “should be ending pretty soon.”

Trump responded Friday by thanking Iran for keeping the strait open. He also said a U.S. naval blockade of Iranian ports would remain in “FULL FORCE” until an agreement is reached.

The latest market swings come as diplomatic efforts continue across the region

The latest market swings come as diplomatic efforts continue across the region. Israel and Lebanon agreed Thursday to a 10-day ceasefire that began at 5 p.m. Eastern time.

Israel has conducted strikes in Lebanon targeting Hezbollah, the Iran-backed militant group. The conflict has added to regional tensions already affecting oil supply routes.

Trump said Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun would be invited to the White House. He described the potential meeting as the first meaningful talks between the two countries in decades.

The State Department said both sides are working toward conditions for longer-term stability. Officials pointed to issues including sovereignty and border security as part of ongoing discussions.

The department also raised concerns about the role of armed groups operating within Lebanon. Trump said he expects Lebanese authorities to address the presence of Hezbollah.

Despite the market rally, analysts cautioned that risks to oil supply remain. They said underlying conditions in the physical oil market continue to tighten.

ING analysts said oil prices had already been trending lower on expectations of a possible

ING analysts said oil prices had already been trending lower on expectations of a possible U.S.-Iran ceasefire extension. They warned that supply constraints persist as long as flows through the Strait of Hormuz remain limited.

“However, the physical market is becoming tighter every day that passes without a restart of oil flows through the Strait of Hormuz,” ING analysts wrote. They said disruptions continue to affect global supply levels.

ING estimates roughly 13 million barrels per day of oil supply has been impacted. The figure accounts for pipeline reroutes and limited tanker activity.

Analysts said the number could increase if restrictions continue. They pointed to the U.S. blockade as a factor that could further reduce available supply.

“The key upside risk for the market is that peace talks between the US and Iran break down,” the analysts said. They added that the gap between U.S. and Iranian positions remains significant.