Oil price drops below $90 a barrel after Iran says strait of Hormuz is open

Iran’s claim that the Strait of Hormuz is open triggered a sharp risk unwind across energy markets, with Brent falling more than 10% to $88.8/bbl from a $119 peak last month. European gas also dropped about 6.4% to roughly €39/MWh as traders priced a possible de-escalation in Middle East supply risk and the prospect of stranded tankers eventually resuming transit. The article says more than 800 tankers remain stuck in the Gulf, including about 300 oil and gas vessels, while before the crisis more than 130 ships a day moved through the strait. That means the market is still trading a potential normalization, not a confirmed one: Tehran’s statement conflicts with caveats from Iranian state media, and shipping companies may still demand proof of safe passage before re-entering the waterway. For precious metals, the main read-through is indirect: easing geopolitical stress and softer energy prices can reduce the inflation/risk premium that has supported gold, although the situation remains fragile and headline-driven. Near term, gold will likely track any follow-up on the ceasefire, shipping activity through Hormuz, and whether the U.S. naval blockade remains in force; a failed reopening would quickly revive safe-haven demand.