Oil prices plunged 11% to approximately $88 per barrel after Iran's foreign minister announced the Strait of Hormuz had reopened to shipping traffic. The immediate market reaction brought relief to global fuel markets starved by the ongoing conflict between the United States and Iran.

The strategic waterway, a critical chokepoint for global oil supplies, will remain open only during the remaining period of cease-fire agreements. This development provides a temporary window for tankers to transport oil and other fuels from the Persian Gulf to other countries.

BP's former chief economist Spencer Dale explained the reprieve doesn't fully address the supply issues. Producers forced to shut down operations will likely hesitate to restart them until confidence builds in a lasting agreement, which remains uncertain with competing cease-fire deadlines approaching.

US gasoline prices already show signs of decreasing and should continue dropping if ships navigate the strait and hostilities don't resume. However, fuel prices are unlikely to return to prewar levels soon, with President Trump maintaining the blockade on ships visiting Iranian ports further complicating the situation.