Oil prices declined sharply on Friday after Iran announced that commercial vessels would be allowed to pass freely through the Strait of Hormuz during the remainder of the current ceasefire period, easing concerns over supply disruptions in the region. Brent crude futures closed down $9.01, or 9.1%, at $90.38 per barrel, having earlier dropped to as low as $86.09. U.S. West Texas Intermediate crude fell $10.48, or 11.5%, to settle at $83.85 per barrel, with an intraday low of $80.56.

The easing of tensions followed remarks from U.S. President Donald Trump, who stated that Tehran had agreed not to close the Strait of Hormuz again. Ship tracking data confirmed an increase in maritime traffic, with about 20 vessels moving out of the Persian Gulf through the strait.

Analysts attributed the rapid price correction to the unwinding of an inflated risk premium that had built over recent weeks amid fears of extended disruption to oil flows. “Crude is shifting back toward pricing actual flow normalization rather than disruption risk,” said market observers from Gelber & Associates.

Further contributing to market optimism were reports of progress in negotiations between the U.S. and Iran toward a memorandum of understanding aimed at avoiding wider conflict. These developments coincided with a 10-day ceasefire agreement reached between Israel and Lebanon, raising hopes of de-escalation in the broader Middle East.

Despite the positive signals, a U.S. official later confirmed that a military blockade against Iran, involving more than 10,000 personnel, remained in place.

Meanwhile, the International Energy Agency (IEA) significantly downgraded its outlook for global oil supply and demand growth. The agency now expects global demand to decline by 80,000 barrels per day in 2026, a notable revision from its previous forecast of a 640,000 barrels per day increase. The IEA cited disruptions from the Middle East conflict and a slowing global economy as key factors influencing the forecast.

In Asia, China—the world's largest importer of crude—has maintained its substantial stockpiles amid the supply volatility. Official data indicate that China had a crude surplus averaging 1.74 million barrels per day in March, in contrast to widespread inventory draws in other major consuming countries.

U.S. energy data revealed declining crude and refined product inventories as of April 10. The Energy Information Administration reported a reduction of 913,000 barrels in crude stockpiles to 463.8 million barrels, contrary to expectations of a modest increase. Meanwhile, crude exports surged by 1.1 million barrels per day to 5.23 million barrels, responding to heightened overseas demand. At the same time, refinery runs decreased by 208,000 barrels per day, with utilization rates dropping to 89.6%.

These mixed signals underscore the ongoing volatility in global oil markets as geopolitical tensions, supply dynamics, and economic indicators continue to shape price movements.