Oil and Gas Plunge on Hormuz Opening, Hope for End of War

Oil and European natural gas prices tumbled after the promised re-opening of the Strait of Hormuz bolstered sweeping optimism that the US-Iran conflict will reach an end and ease disruptions to global energy markets.

Brent futures retreated 9.1% to settle near $90 a barrel, erasing most gains since the start of the US-Iran war, while West Texas Intermediate slumped to roughly $84. European benchmark gas prices fell as much as 10% to end the day near €39 a megawatt-hour. Prices plummeted after Iran said it would open the Strait of Hormuz for the duration of a 10-day ceasefire between Israel and Hezbollah in Lebanon.