Japan’s Kyodo News Agency, citing a senior Iranian official, reported that Iran has offered to reopen the Strait of Hormuz within seven days if Washington takes initial steps to ease military pressure and lift the blockade on Iranian ports, as part of an effort to revive negotiations and bring the war to an end.
Following the publication of the report, global oil prices fell significantly:
• U.S. West Texas Intermediate (WTI): fell to around $90 per barrel
• Brent crude: declined to approximately $94–98 per barrel
• Percentage decline: reached around 6.41% in some trading sessions
The market interpreted Iran’s offer as a potential signal of de-escalation in the Gulf, prompting traders to reduce the geopolitical risk premium that had been supporting oil prices.
This is not the first time Iranian diplomacy has contributed to a decline in oil prices. Last April, Foreign Minister Abbas Araghchi announced on X that Iran would fully reopen the Strait of Hormuz during a ceasefire. WTI subsequently fell to $81, from $93.40, while Brent declined to $98.05.
While higher oil prices exert real pressure on the United States and provide the Axis with greater leverage on the ground, statements that drive oil prices lower can be viewed as a unilateral concession that ultimately undermines the Axis’s own strategic leverage.