Strait of Hormuz Reopens, Brent Falls Below $90 and Exxon Shares Drop 5%
Iran declared full reopening of the Strait of Hormuz after a Lebanon ceasefire, causing Brent crude to fall below $90 per barrel. Exxon Mobil’s shares dropped about 5% on Friday as U.S. energy stocks extended losses on renewed supply expectations.
1. Strait of Hormuz Fully Reopens
Iran’s foreign minister announced that in line with a two-week ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is completely open for the remaining period, with transit required along coordinated routes set by maritime authorities.
2. Brent Crude Dips Below $90
The announcement prompted Brent crude futures to slip below $90 per barrel for the first time in weeks, reversing a rally driven by earlier supply concerns when the strait was largely closed due to regional tensions.
3. Exxon Mobil Shares Drop 5%
Exxon Mobil shares fell approximately 5% on Friday, leading a broader 4–7% slide across major U.S. energy stocks as investors adjusted expectations for increased oil flow and lower price support.
4. Outlook for Energy Sector
With the key shipping chokepoint reopened, analysts expect higher crude volumes to reach global markets, potentially capping near-term oil prices and weighing on sector earnings until geopolitical risks resurface.