Prices of crude oil fell yesterday below $90 per barrel at the international market following the announcement by Iran that the Strait of Hormuz has opened for commercial activities.

While international benchmark Brent crude dropped more than 10% to around $89 a barrel, the United States benchmark West Texas Intermediate crude fell over 10% to under $85 a barrel.

Oil prices had climbed to over $110 per barrel at the heat of the Middle East crisis. Iran said the Strait of Hormuz would open to commercial shipping, potentially clearing the way for tankers holding millions of barrels of oil and gas to reach the global market.

Iran’s foreign minister, Abbas Araghchi, said vessels would be free to transit the Strait of Hormuz for the duration of the 10 day ceasefire between Israel and Lebanon struck on Thursday. US President, Donald Trump, told reporters the ceasefire would include Iran-backed Hezbollah.