Oil Crashes 9.6% as Iran FM Declares Strait of Hormuz 'Fully Open' to Commercial Traffic

WTI crude oil plunged 9.63% on April 17 — from approximately $97/barrel to ~$85.57 — after Iran's Foreign Minister Abbas Araghchi announced the Strait of Hormuz is 'fully open' to commercial shipping during the ceasefire period. Brent crude fell more than 11% immediately following the announcement. The collapse marks a reversal of the Iran war energy shock that had driven oil to a peak of ~$113/barrel on April 4 and contributed to the March CPI surge to 3.3% (gas +21.2%). The rapid oil price decline, if sustained, could meaningfully reduce near-term US inflation — potentially giving the Federal Reserve more room to maneuver at its April 29-30 FOMC meeting. The IEA's April 2026 Oil Market Report had previously noted Q1 2026 crude prices rose at the largest quarterly rate on an inflation-adjusted basis since 1988; the April 17 drop begins reversing that shock. Markets rallied on the news across equities and bonds.