Oil prices plummeted by around 10% on Friday after Iran declared the Strait of Hormuz "completely open" amid a ceasefire between Israel and Lebanon. 

The West Texas Intermediate, the U.S. benchmark, fell by $10.33, or 10.91%, to $84.36, according to oilprice.com. Brent, the international standard, dropped $8.89, or 8.94%, to $90.05 a barrel. 

U.S. motorists also experienced relief at the pump, with average gasoline prices falling to $4.08 per gallon for regular on Friday, after hitting $4.17 on April 9, the highest level so far this year, AAA data shows. Gas prices are closely tied to the price of crude, which accounts for 51% of the cost of a gallon of gas.

Oil prices jumped after the war in the Middle East began on Feb. 28, at times brushing up against nearly $120 a barrel. The cost spiked due to a slowdown in traffic through the Strait of Hormuz, a key artery for oil shipments through which one-fifth of the world's oil supply normally flows. 

Prices fell on Friday after Iran's foreign minister, Seyed Abbas Araghchi, posted on X, "In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran."

A U.S. blockade of Iranian ports and vessels remains in effect, President Trump said on Truth Social. On Friday, the U.S. Central Command said "19 ships have complied with direction from U.S. forces to turn around and return to Iran" since the blockade started earlier this week.

Stocks rallied Friday with the S&P 500 up 1.09%, and the Dow Jones Industrial Average up 1.84% as of 2 p.m. ET. The tech-heavy Nasdaq Composite climbed 1.28%.

In another positive sign for investors, Mr. Trump signaled the U.S. could be closer to reaching an agreement with Iran, telling Bloomberg on Friday that a deal to end the war is mostly complete and that Iran has agreed to suspend its nuclear program indefinitely, a key point of contention in negotiations. 

The president said on Thursday he's open to extending the two-week ceasefire agreed to by the U.S. and Iran on April 8.

Edited by Mark Osborne

In:

• Iran
• Donald Trump
• Oil and Gas