The United States lifted its blockade on Iran Thursday, clearing the way for shipping to resume through the strategic Strait of Hormuz. The move sent Brent crude oil down 1% to $79.03 a barrel and pushed Asian stock markets in Japan and South Korea to new record highs.
Oil slides as Hormuz reopens
Crude prices fell sharply after word of the blockade’s end reached traders. Brent dropped a full percentage point to settle at $79.03. The Strait of Hormuz, through which about a fifth of the world’s petroleum moves, had been effectively closed under the U.S. blockade. With tankers again able to transit the narrow waterway, supply fears eased almost immediately.
Asian benchmarks hit records
Investors in Tokyo and Seoul cheered the news. Japan’s Nikkei and South Korea’s Kospi both closed at all-time highs Thursday, though the rally appeared broader than just energy stocks. The blockade’s removal removed a layer of geopolitical uncertainty that had weighed on regional markets for weeks. Analysts pointed to lower oil costs as a direct benefit for energy-importing economies like Japan and South Korea.
Polymarket odds tick higher
On the prediction platform Polymarket, the probability of a “Yes” outcome on a related contract rose to 2.7%. The market had been pricing in a much lower chance of the blockade ending before this week’s decision. The modest increase suggests traders still see significant hurdles ahead, even after the policy reversal.
Shipping companies began moving vessels through the Strait of Hormuz within hours of the announcement. The U.S. provided no official explanation for lifting the blockade, which had been in place since earlier this year. The immediate market reaction was clear, however: lower oil prices and a surge in Asian equities.
