Oil falls 13%, Dow Jones soars 1000 points: Iran opens Strait of Hormuz for truce
18.04.2026Global markets celebrate de-escalation in the Middle East: the unblocking of the world's main energy artery has returned oil prices to March lows and sparked a rally on Wall Street.
The global economy got an unexpected breath of fresh air today. After weeks of tense anticipation and the threat of an energy collapse, Iran officially announced the full opening of the Strait of Hormuz to commercial shipping for the duration of a 10-day ceasefire. 1The market reaction was lightning-fast: Brent crude fell 13% to $86,30 per barrel, while the US Dow Jones industrial average posted a record gain, adding more than 1000 points in a single trading session. 1 2This diplomatic breakthrough, confirmed by President Donald Trump, was the most powerful signal of stabilization in the entire conflict.
Diplomacy in action: how 10 days changed the world's oil map
A statement by Iranian Foreign Minister Seyyed Abbas Araghchi on the X network triggered a massive sell-off in oil futures. “In accordance with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open,” the head of Iranian diplomacy said. 1This decision removed the threat of blocking 21 million barrels of oil per day that had loomed over the world since the outbreak of hostilities between the US, Israel and Iran in February 2026. 1 3.
For world leaders and central banks, this truce is a chance to curb inflationary pressures. WTI oil also showed a sharp drop of 13%, stopping at $79,20 per barrel. Traders, who yesterday were pricing in a “war premium”, are today massively liquidating long positions, returning quotes to the levels of the beginning of spring 1 4.
Wall Street at its peak: record recovery of stock indices
The US stock market reacted to the news with unprecedented enthusiasm. The S&P 500 index rose 1,3%, while the tech-heavy Nasdaq added 1,6%, extending its longest winning streak since 1992 — 12 consecutive days of gains. 1Analysts note that the market has not only recouped losses, but also reached new historical highs amid optimism about the end of the war. 1 5.
But seasoned strategists like Doug Beat of the Wells Fargo Investment Institute warn against getting too excited. “Markets care about the free flow of oil in the short term, but it all depends on how the negotiations go,” the expert emphasizes. 1Indeed, the ceasefire is only designed to last 10 days, and the future fate of the region remains the subject of complex negotiations between Washington, Tel Aviv, and Tehran.
Ukrainian interest: falling resource prices and geopolitical pause
For Ukraine, the 13% drop in world oil prices is a strategic bonus. Given its complete dependence on imported fuel, such a decline in quotations on the London and Rotterdam exchanges should lead to a decrease in the price of diesel and gasoline at Ukrainian gas stations within the next two weeks. 6This is critically important for logistics chains and the sowing campaign.
On the other hand, OSINT data shows that while the “oil truce” continues, the US military presence in the region is not decreasing. Donald Trump made it clear: the naval blockade of Iran will remain in force “until our transaction with Iran is 100% complete” 1This suggests that economic easing is only part of a larger deal that could include curbs on Iran's proxy forces and nuclear program.
The Trump Factor: Truth Social as a Platform for Oil Policy
The US president traditionally uses his own media resources to manage market expectations. His posts about the “open and ready for full passage” of the strait have become a major source of information for investors 1Trump stresses speed of process: “This process should move very quickly because most of the points have already been agreed upon” 1Such confidence from the White House gives investors confidence, but at the same time leaves open the question of the price that will have to be paid for a lasting peace.
Technical analysis: will oil hold below $90?
Despite the collapse, Brent and WTI prices still remain above their pre-war levels ($73 and $67 respectively) 1Technical analysts point to a strong support level in the $80-82 per barrel range for Brent 4 7If the 10-day truce does not develop into a permanent agreement, the market could see a similarly rapid “bounce” upwards as soon as the first signs of a breakdown in the agreements appear.
The world has gotten a reprieve, but the Strait of Hormuz remains a “noose” that Tehran could tighten at any moment. For now, markets are choosing to believe in diplomacy, but oil at $86 is only a temporary anomaly in an unfinished conflict.
Sources
- CNN Business: Oil plunges 13%, Dow soars 1,000 points after Iran says Strait of Hormuz is 'completely open' during ceasefire, April 2026
- Wall Street Journal: Markets react to US-Iran 10-day ceasefire agreement
- Bloomberg: Crude Oil Slump as Iranian Shipping Risks Fade
- Financial Times: Global energy markets and the Middle East de-escalation
- CNBC: Nasdaq 12-day winning streak amid Middle East peace hopes
- Ukrainian energy: Consequences of the global fall in oil prices for the Ukrainian fuel market
- Reuters: Analysts warn of oil price volatility despite temporary ceasefire
