Oil Slumps 9% to $83.85 After Iran Declares Strait Open
Crude oil dropped over 9% in hours to $83.85 a barrel (WTI) and $90.38 (Brent) after Iran declared the Strait of Hormuz fully open, reversing a 27% premium above pre-war prices near $92. This sudden slump highlights volatility that could pressure Chevron’s upstream revenue and margins.
1. Iran Reopens Strait of Hormuz
On April 17, Iran’s foreign minister declared the Strait of Hormuz completely open to commercial traffic until the ceasefire’s scheduled expiry on April 21, immediately easing a major supply bottleneck.
2. Rapid Oil Price Decline
West Texas Intermediate crude fell 9% in hours to $83.85 a barrel, while Brent sank to $90.38, retracting a 27% surge above the pre-war benchmark of $72.48.
3. Implications for Chevron
The sharp pullback in benchmark prices could weigh on Chevron’s upstream revenue and margin forecasts, prompting analysts to reconsider near-term cash flow projections if crude remains under pressure.