WTI Falls Toward $80 as Hormuz Reopens to Traffic

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: April 17, 2026

Key Moments

WTI Crude trades near $81.50 after a 9.12% intraday drop, reversing an earlier spike above $90.
Iran declares the Strait of Hormuz fully open to commercial vessels for the remainder of the ceasefire period.
Earlier ING estimates indicated about 13 million barrels per day of Oil supply had been disrupted by the blockade.

WTI Plunge Follows Sharp Intra-Day Reversal

West Texas Intermediate (WTI) US Oil prices are under heavy pressure on Friday, trading close to $81.50 at the time of writing after falling 9.12% during the session. The decline comes after a dramatic intraday swing in which prices briefly moved above $90 before aggressive selling reversed the advance. WTI slid to an intraday trough of $80.30, the lowest level since March 10, putting the key $80 psychological threshold back in focus for market participants.

Iran Reopens Strait of Hormuz Amid Ceasefire

The sharp sell-off is linked to a major geopolitical shift in the Middle East. Iran’s Foreign Minister Abbas Araghchi stated that, following the ceasefire in Lebanon, the Strait of Hormuz has been declared fully open to all commercial ships for the remainder of the truce. He indicated that maritime movements through the strategically vital passage will proceed along coordinated routes already set by the Ports and Maritime Organisation of Iran.

United States (US) President Donald Trump reacted to the announcement in a post on Truth Social: “The Strait of Hormuz is completely open and ready for business and full passage, but the naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete,” Trump said, and added that he expects this process to go very quickly since most of the points are already negotiated.

Market Narrative Flips as Supply Fears Ease

The reopening of the Strait significantly alters the backdrop that had recently driven Oil higher. In recent sessions, traders had been bracing for an extended closure of the Strait of Hormuz amid rising tensions between the US and Iran. The route is one of the most important global energy arteries, handling a large portion of international Oil shipments.

Earlier projections from ING indicated that around 13 million barrels per day of Oil supply had been disrupted by the blockade surrounding the Strait, adding to pronounced volatility across the energy complex. The renewed access for commercial traffic is now being interpreted as a signal of potential normalization in supply flows, leading market participants to aggressively remove previously embedded geopolitical risk premiums from prices.

Key Market Metrics and Developments	Detail
Current WTI trading level (time of writing)	Near $81.50
Intraday percentage decline	9.12%
Intraday high	Briefly above $90
Intraday low	$80.30
Significant prior disruption estimate (ING)	13 million barrels per day

Focus Shifts to Ceasefire Durability and Diplomacy

With immediate supply concerns receding, positioning in the Oil market is adjusting quickly. The reduction in geopolitical risk is prompting traders to reassess exposures and recalibrate views on near-term price dynamics. Market attention is now increasingly centered on how long the ceasefire will hold and whether the United States and Iran can secure a more enduring arrangement that keeps the Strait of Hormuz accessible over a longer horizon.

WTI Oil – Key Concepts and Market Drivers

What Is WTI Oil?

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

Primary Influences on WTI Pricing

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

Role of Inventory Data

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

OPEC’s Impact on WTI

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.